Latest News

Hotels: Occupancy Rate Down Slightly Compared to Same Week in 2019

Panorama of a city business district with office buildings and skyscrapers and superimposed data, charts and diagrams related to stock market, currency exchange and global finance. Blue line graphs with numbers and exchange rates, candlestick charts and financial figures fill the image with a glowing light. Sunset light.

by Calculated Risk on 7/09/2021 10:01:00 AM

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 0.1% compared to the same week in 2019 (easy comparison due to the timing of July 4th). Leisure (weekend) occupancy has recovered, but weekday (more business) is still down.

U.S. hotel occupancy dipped while average daily rate (ADR) was up from previous weeks and the comparable period in 2019, according to STR’s latest data through July 3.

June 27 through July 3, 2021 (percentage change from comparable week in 2019*):

o Occupancy: 65.4% (-0.1%)
o Average daily rate (ADR): US$135.35 (+5.8%)
o Revenue per available room (RevPAR): US$88.51 (+5.7%)

While occupancy was down because of the holiday week, overall comparisons were more favorable because of low performance during the corresponding week from 2019. That week in 2019 was lower due to the 4th of July falling on a Thursday.

emphasis added

The 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 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 should have decent occupancy – but it is uncertain what will happen in the Fall with business travel.

Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Decreased Sharply

Previous article

AAR: June Rail Carloads down, Intermodal Up Compared to 2019

Next article

You may also like


Leave a reply

Your email address will not be published.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

More in Latest News