Hotel Occupancy: Heading for a Record Year - InvestingChannel

Hotel Occupancy: Heading for a Record Year

Here is an update on hotel occupancy from HotelNewsNow.com: STR: US results for week ending 5 December

The U.S. hotel industry recorded positive results in two of the three key performance measurements during the week of 29 November through 5 December 2015, according to data from STR, Inc.

In year-over-year measurements, the industry’s occupancy decreased 0.4% to 57.0%. However, average daily rate for the week was up 1.8% to US$116.51, and revenue per available room increased 1.5% to US$66.37.
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The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.  Hotels are currently in the weakest part of the year; December and January.

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.

For 2015, the 4-week average of the occupancy rate is above 2000 (best year for hotels), and 2015 will be the best year ever for hotels.

Occupancy Rate Year-to-date:
1) 2015 66.9%
2) 2000 66.1%
3) 2014 64.8%

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

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