Sunday, September 08, 2019

Hotels: Occupancy Rate Decreased Year-over-year

by Calculated Risk on 9/08/2019 08:19:00 AM

From HotelNewsNow.com: STR: US hotel results for week ending 31 August

The U.S. hotel industry reported mostly positive year-over-year results in the three key performance metrics during the week of 25-31 August 2019, according to data from STR.

In comparison with the week of 26 August through 1 September 2018, the industry recorded the following:

Occupancy: -0.4% to 66.7%
• Average daily rate (ADR): +1.4% to US$127.26
• Revenue per available room (RevPAR): +1.0% at US$84.87

Orlando, Florida, saw the steepest declines in occupancy (-21.6% to 52.4%) and RevPAR (-24.1% to US$52.84).

Miami/Hialeah, Florida, posted the largest drop in ADR (-6.6% to US$137.27) and the only other double-digit decreases in occupancy (-10.9% to 60.1%) and RevPAR (-16.8% to US$82.56).

Due to the anticipation of Hurricane Dorian, the three largest hotel markets in Florida each reported significant declines in occupancy on Friday and Saturday.
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, and close to-date compared to the previous 4 years.

However occupancy will be lower this year than in 2018 (the record year), unless there is a strong boost due to hurricane impacted areas.

Seasonally, the occupancy rate will now decline until the Fall business travel season.

Data Source: STR, Courtesy of HotelNewsNow.com