Thursday, August 01, 2019

Hotels: Occupancy Rate Decreased Year-over-year, "Hotels’ rocket is losing fuel"

by Calculated Risk on 8/01/2019 05:20:00 PM

From Jan Freitag at HotelNewsNow.com: June data shows US hotels’ rocket is losing fuel

Well, it finally happened, 12-month-moving-average occupancy is no longer at record levels. June 12MMA occupancy at 66.2% was below the May result of 66.3%. Occupancy bottomed out in January 2010 (54.5%), and we had reported consecutively higher annualized occupancies ever since. Starting in May 2015 (64.9%), each month we reported the highest annualized occupancy ever—until now. Let’s raise a coffee in salute to the end of a good run, and the end of STR presenters saying on stage “the highest occupancy ever recorded.”
From HotelNewsNow.com: STR: US hotel results for week ending 27 July
The U.S. hotel industry reported negative year-over-year results in the three key performance metrics during the week of 21-27 July 2019, according to data from STR.

In comparison with the week of 22-28 July 2018, the industry recorded the following:

Occupancy: -1.0% to 77.5%
• Average daily rate (ADR): -0.5% to US$136.00
• Revenue per available room (RevPAR): -1.6% at US$105.43
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Hotel Occupancy RateClick on graph for larger image.

The red line is for 2019, dash light blue is 2018 (record year), blue is the median, and black is for 2009 (the worst year probably since the Great Depression for hotels).

Occupancy has been solid in 2019, close to-date compared to the previous 4 years.

Seasonally, the occupancy rate will now stay at a high level during the Summer travel season.

Data Source: STR, Courtesy of HotelNewsNow.com