Hotels: Best Week Ever, On Pace for Record Occupancy in 2015 - InvestingChannel

Hotels: Best Week Ever, On Pace for Record Occupancy in 2015

From HotelNewsNow.com: STR: US hotel results for week ending 25 July

The U.S. hotel industry recorded positive results in the three key performance measurements during the week of 19-25 July 2015, according to data from STR, Inc.

In year-over-year measurements, the industry’s occupancy increased 1.5% to 79.1%. Average daily rate for the week was up 5.1% to US$125.04. Revenue per available room increased 6.6% to finish the week at US$98.91.
emphasis added

The 79.1% occupancy rate reported for last week was the best week on record (the four week average will peak in August).

For the same week in 2009, ADR (average daily rate) was $98.13 and RevPAR (Revenue per available room) was $65.77. ADR is up 25% since July 2009, and RevPAR is up 50%!

The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.  The occupancy rate will be high during the summer travel season.

Hotel Occupancy RateThe red line is for 2015, dashed orange is 2014, blue is the median, and black is for 2009 – the worst year since the Great Depression for hotels.  Purple is for 2000.

The 4-week average of the occupancy rate is solidly above the median for 2000-2007, and above last year.

Right now 2015 is above 2000 (best year for hotels), and 2015 will probably be the best year ever for hotels.

Late July is usually the best time of the year for hotels – although the four week average usually peaks in August.  A very strong year, and a key reason new hotel construction has picked up.

Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com

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