Thursday, May 13, 2021

Hotels: Occupancy Rate Down 17% Compared to Same Week in 2019

by Calculated Risk on 5/13/2021 10:51:00 AM

Note: The year-over-year occupancy comparisons are easy, since occupancy declined sharply at the onset of the pandemic. However, occupancy is still down significantly from normal levels.

The occupancy rate is down 17% compared to the same week in 2019.

Due to more supply in the marketplace, U.S. hotel occupancy fell slightly from the previous week, according to STR's latest data through May 8.

May 2-8, 2021:

Occupancy: 56.7%
• Average daily rate (ADR): US$110.19
• Revenue per available room (RevPAR): US$62.50

Demand was up week over week, but an increase in supply from both reopenings and new properties pulled national occupancy down. Major markets, such as New York City and San Francisco, are showing the most movement with properties coming back online.
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 on record for hotels prior to 2020).

Occupancy is now slightly above the horrible 2009 levels.

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