From HotelNewsNow.com: STR: US hotel results for week ending 16 May
STR data ending with 16 May showed continued modest gains in U.S. hotel performance compared with previous weeks. Year-over-year declines remain significant although not as severe as the levels recorded in April.
10-16 May 2020 (percentage change from comparable week in 2019):
• Occupancy: 32.4% (-54.1%)
• Average daily rate (ADR): US$77.55 (-42.4%)
• evenue per available room (RevPAR): US$25.12 (-73.6%)
“The trend of ‘less bad’ data continued with occupancy and ADR on a slow climb driven by a fifth consecutive week-to-week increase in demand,” said Jan Freitag, STR’s senior VP of lodging insights. “Last week’s data showed demand of more than 10 million room nights sold for the first time since the end of March, and this past week, the industry inched close to 11 million. All 50 states have at least partially reopened, so slow weekly demand growth should continue with more leisure activity around the country. Weekend occupancies continue to increase at a healthy clip, especially in drive-to destinations with beach access like Florida, or national park access, such as Gatlinburg, Tennessee. The industry will remain largely dependent on the leisure segment as uncertainty remains over when hotels will be ready to accommodate large events and group business.”
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.
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).
During 2009 (black line), many hotels were struggling. At this point in the year, the 4-week average in 2009 was 57%. Now it is half that level at just 29%! (The median is 65%).
COVID-19 has crushed hotel occupancy.
Note: Y-axis doesn’t start at zero to better show the seasonal change.