Thursday, October 15, 2020

Hotels: Occupancy Rate Declined 29.2% Year-over-year

by Calculated Risk on 10/15/2020 11:31:00 AM

From STR: US hotel results for week ending 10 October

U.S. hotel weekly occupancy hit 50% for just the second time since the low point of the pandemic, according to the latest data from STR through 10 October.

4-10 October 2020 (percentage change from comparable week in 2019):

Occupancy: 50.0% (-29.2%)
• Average daily rate (ADR): US$97.67 (-25.9%)
• Revenue per available room (RevPAR): US$48.85 (-47.5%)

While a handful of the highest occupancy markets were those in areas affected by natural disasters (i.e. California wildfires), Saturday produced the week’s highest occupancy (65.2%) and ADR (US$110.84), indicating that the leisure and weekend staycation demand seen during the summer may make appearances into the fall.
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 2020, dash light blue is 2019, blue is the median, and black is for 2009 (the worst year since the Great Depression for hotels - before 2020).

So far there has been little business travel pickup that usually happens in the Fall.

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