Thursday , August 13 2020
Home / Calculated Risk / Hotels: Occupancy Rate Declined 38.7% Year-over-year

Hotels: Occupancy Rate Declined 38.7% Year-over-year

Summary:
From HotelNewsNow.com: STR: US hotel results for week ending 27 JuneU.S. hotel performance data for the week ending 27 June showed another small rise from previous weeks and less severe year-over-year declines, according to STR.21-27 June 2020 (percentage change from comparable week in 2019):• Occupancy: 46.2% (-38.7%)• Average daily rate (ADR): US.37 (-29.0%)• Revenue per available room (RevPAR): US.03 (-56.5%)emphasis addedThe following graph shows the seasonal pattern for the hotel occupancy rate using the four week average. Click 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).Usually hotel occupancy starts to pick up seasonally in early June.

Topics:
Calculated Risk considers the following as important:

This could be interesting, too:

Tyler Durden writes “Disastrous Economic Situation” – Small Firm Bust Goes Unnoticed As Economy Flounders  

Tyler Durden writes Grim College COVID-19 Rules

Tyler Durden writes “Copper Is Way Ahead Of The Fundamentals,” Warns Commerzbank

Calculated Risk writes August 12 COVID-19 Test Results

From HotelNewsNow.com: STR: US hotel results for week ending 27 June
U.S. hotel performance data for the week ending 27 June showed another small rise from previous weeks and less severe year-over-year declines, according to STR.

21-27 June 2020 (percentage change from comparable week in 2019):

Occupancy: 46.2% (-38.7%)
• Average daily rate (ADR): US$95.37 (-29.0%)
• Revenue per available room (RevPAR): US$44.03 (-56.5%)
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Hotels: Occupancy Rate Declined 38.7% Year-over-yearClick 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).

Usually hotel occupancy starts to pick up seasonally in early June. So some of the recent pickup might be seasonal (summer travel).   Note that summer occupancy usually peaks at the end of July or in early August.

According to STR, the improvement appears related mostly to leisure travel as opposed to business travel.

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

Leave a Reply

Your email address will not be published. Required fields are marked *