STR: More Than 75 Percent of U.S. Hotel Rooms Are Empty

Empty highway during COVID-19

HENDERSONVILLE, Tenn. — Reflecting the continued impact of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines across three key performance metrics during the week of March 29-April 4, 2020, according to data from STR.

In comparison with the week of March 31 through April 6, 2019, the U.S. hotel industry recorded a 68.5 percent decline in occupancy to 21.6 percent, a 41.5 percent drop in average daily rate (ADR) to $76.51, and an 81.6 percent fall in revenue per available room (RevPAR) to $16.50.

“Data worsened a bit from last week, and certain patterns were extended around occupancy,” said Jan Freitag, STR’s senior vice president of lodging insights. “Economy hotels continued to run the highest occupancy, while interstate and suburban properties once again posted the top occupancy rates among location types. This shows there are still pockets of demand while more than 75 percent of the rooms around the country are empty. We don’t expect any material change in the magnitude of RevPAR declines for the time being.”

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Top 25 Market Performance — March 29-April 4, 2020

Aggregate data for the Top 25 Markets showed steeper declines across the metrics: occupancy (down 74.7 percent to 19.4 percent), ADR (down 47 percent to $85.61), and RevPAR (down 86.6 percent to $16.57).

Among those Top 25 Markets, Oahu Island, Hawaii, experienced the largest decrease in occupancy (down 90.7 percent) and the only single-digit absolute occupancy level (7 percent). The decline in occupancy resulted in the steepest drop in RevPAR (down 93.7 percent to $10.83).

Minneapolis/St. Paul, Minnesota-Wisconsin, posted the largest decline in ADR (down 57 percent to $68.23).

Of note, occupancy in New York declined 79.1 percent to 18.3 percent. In Seattle, occupancy dropped 73.3 percent to 19.5 percent.

 


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