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Thursday, February 04, 2021

Hotels: Occupancy Rate Declined 29.6% Year-over-year

by Calculated Risk on 2/04/2021 01:06:00 PM

U.S. weekly hotel occupancy remained relatively flat from the previous week, according to STR‘s latest data through Jan. 30.

Jan. 24-30, 2021 [percentage change from comparable week in 2020]:

Occupancy: 40.4% [-29.6%]
• Average daily rate [ADR]: US$89.62 [-29.8%]
• Revenue per available room [RevPAR]: US$36.23 [-50.6%]
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 2021, black is 2020, blue is the median, and dashed light blue is for 2009 (the worst year since the Great Depression for hotels prior to 2020).

Even when occupancy increases to 2009 levels, hotels will still be hurting.

Seasonally we'd expect that business travel would start to pick up in the new year, but there will probably not be much pickup early in 2021.

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