Thursday, August 20, 2020

Hotels: Occupancy Rate Declined 30% Year-over-year

by Calculated Risk on 8/20/2020 12:32:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 15 August

U.S. weekly hotel occupancy hit 50.0% for the first time since mid-March, according to the latest data from STR.

9-15 August 2020 (percentage change from comparable week in 2019):

Occupancy: 50.2% (-30.0%)
• Average daily rate (ADR): US$101.41 (-23.0%)
• Revenue per available room (RevPAR): US$50.87 (-46.1%)

U.S. occupancy has risen week over week for 17 of the last 18 weeks, although growth in demand (room nights sold) has slowed. The week ending 14 March was the last with occupancy of at least 50.0%.
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

As STR noted, the occupancy rate has increased week-to-week in "17 of the last 18 weeks". The increases in occupancy have slowed and are well below the level for this week last year of 72%.

Hotel Occupancy RateClick on graph for larger image.

The red line is for 2020, dash light blue is 2019, blue is the median, and black is for 2009 (the worst year probably since the Great Depression for hotels).

The leisure travel season usually peaks at the beginning of August (right now), and the occupancy rate typically declines sharply in the Fall.

With so many schools closed, the leisure travel season might be lasting longer this year than usual.

Note: Y-axis doesn't start at zero to better show the seasonal change.