Hotels: Occupancy Rate Down 9% Compared to Same Week in 2019 - InvestingChannel

Hotels: Occupancy Rate Down 9% Compared to Same Week in 2019

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 8.7% compared to the same week in 2019.

U.S. weekly hotel occupancy reached its highest level since October 2019, according to STR‘s latest data through July 17.

July 11-17, 2021 (percentage change from comparable week in 2019*):

Occupancy: 71.0% (-8.7%)
• Average daily rate (ADR): US$139.19 (+1.8%)
• Revenue per available room (RevPAR): US$98.87 (-7.1%)

Despite a four-point, week-over-week improvement in occupancy, ADR dipped slightly from the all-time high achieved the previous week.
emphasis added

The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Hotel Occupancy RateClick 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.  In another recent article, a CoStar analyst points out “Leisure Demand Continues To Do the Heavy Lifting for Industry”.

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