Friday, October 11, 2019

Hotels: Occupancy Rate Decreased Year-over-year

by Calculated Risk on 10/11/2019 09:05:00 AM

From HotelNewsNow.com: STR: US hotel results for week ending 5 October

The U.S. hotel industry reported negative year-over-year results in the three key performance metrics during the week of 29 September through 5 October 2019, according to data from STR.

In comparison with the week of 30 September through 6 October 2018, the industry recorded the following:

Occupancy: -3.9% to 68.1%
• Average daily rate (ADR): -3.8% to US$129.21
• Revenue per available room (RevPAR): -7.5% to US$88.00

STR analysts attribute significant performance decreases in many markets to the Rosh Hashanah calendar shift. Travel and conference schedules during the comparable time period last year were not affected by the Jewish holidays.
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).

Seasonally, the 4-week average of the occupancy rate will now increase during the Fall business travel season.

Data Source: STR, Courtesy of HotelNewsNow.com