In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Sunday, October 25, 2020

Hotels: Occupancy Rate Declined 30.7% Year-over-year

by Calculated Risk on 10/25/2020 08:11:00 AM

From STR: US hotel results for week ending 17 October

U.S. hotel occupancy was virtually flat from the previous week at 50.1%, according to the latest data from STR through 17 October.

11-17 October 2020 (percentage change from comparable week in 2019):

Occupancy: 50.1% (-30.7%)
• Average daily rate (ADR): US$97.69 (-28.3%)
• Revenue per available room (RevPAR): US$48.91 (-50.3%)
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.