by Calculated Risk on 1/05/2020 01:27:00 PM
Sunday, January 05, 2020
Hotels: A Solid Year for Occupancy Rate in 2019, STR Projects further small Occupancy Decline in Q1 2020
From HotelNewsNow.com: 2019’s weak growth trajectory to continue in Q1 2020
“Q1 2020 should see the fourth consecutive quarterly decline in the national occupancy level and the largest such decline … since Q3 2018,” [said] Mark Woodworth, senior managing director and head of lodging research for CBRE Hotel’s Americas Research …From HotelNewsNow.com: STR: US hotel results for week ending 28 December
For Q1 2020, STR is projecting a 0.6% increase in RevPAR, pushed up exclusively by average daily rate, which is expected to increase 1.1% year over year as occupancy decreases 0.5%.
The U.S. hotel industry reported negative year-over-year results in the three key performance metrics during the week of 22-28 December 2019, according to data from STR.The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.
In comparison with the week of 23-29 December 2018, the industry recorded the following:
• Occupancy: -4.9% to 48.5%
• Average daily rate (ADR): -2.6% to US$127.92
• Revenue per available room (RevPAR): -7.4% to US$62.00
Click 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).
The average occupancy rate in 2019 was just behind the record rate in 2018 and essentially tied with 2017. Another solid year for hotels.
Seasonally, the 4-week average of the occupancy rate will decline into January.
Data Source: STR, Courtesy of HotelNewsNow.com
Posted by Calculated Risk on 1/05/2020 01:27:00 PM