Tuesday , September 28 2021
Home / Calculated Risk / Hotels: Occupancy Rate Down 8% Compared to Same Week in 2019

Hotels: Occupancy Rate Down 8% Compared to Same Week in 2019

Summary:
Note: The year-over-year occupancy comparisons are easy, since occupancy declined sharply at the onset of the pandemic.  So STR is comparing to the same week in 2019.The occupancy rate is down 7.8% compared to the same week in 2019.From CoStar: STR: US Weekly Hotel Occupancy Reaches Highest Level Since October 2019U.S. weekly hotel occupancy reached its highest level since October 2019, while room rates hit an all-time high, according to STR‘s latest data through July 24.July 18-24, 2021 (percentage change from comparable week in 2019*):• Occupancy: 71.4% (-7.8%)• Average daily rate (ADR): 1.75 (+4.0%)• Revenue per available room (RevPAR): 1.24 (-4.2%) Historically, the middle weeks of July are the country’s highest occupancy weeks each year, and 2021 has been no different even as

Topics:
Calculated Risk considers the following as important:

This could be interesting, too:

Calculated Risk writes Tuesday: Case-Shiller House Prices, Fed Chair Powell Testimony

Tyler Durden writes Senate Republicans Vote Down Pelosi’s Debt Ceiling Bill, As Expected

Tyler Durden writes Goldman Cuts China’s Q3 GDP Growth To 0% As A Result Of Growing Energy Crisis

Tyler Durden writes Misguided Petition Demanding Permanent Monthly ,000 Stimulus Checks Nears Huge Milestone

Note: The year-over-year occupancy comparisons are easy, since occupancy declined sharply at the onset of the pandemic.  So STR is comparing to the same week in 2019.

The occupancy rate is down 7.8% compared to the same week in 2019.

U.S. weekly hotel occupancy reached its highest level since October 2019, while room rates hit an all-time high, according to STR‘s latest data through July 24.

July 18-24, 2021 (percentage change from comparable week in 2019*):

Occupancy: 71.4% (-7.8%)
• Average daily rate (ADR): $141.75 (+4.0%)
• Revenue per available room (RevPAR): $101.24 (-4.2%)

Historically, the middle weeks of July are the country’s highest occupancy weeks each year, and 2021 has been no different even as demand slows week to week.
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Hotels: Occupancy Rate Down 8% Compared to Same Week in 2019Click on graph for larger image.

The red line is for 2021, black is 2020, blue is the median, dashed purple is 2019, and dashed light blue is for 2009 (the worst year on record for hotels prior to 2020).

Occupancy is well above the horrible 2009 levels and weekend occupancy (leisure) has been solid.

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

With solid leisure travel, the Summer months have had decent occupancy - but it is uncertain what will happen in the Fall with business travel. 

Leave a Reply

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

This site uses Akismet to reduce spam. Learn how your comment data is processed.