STR: Significant RevPAR Declines Are the “New Normal”

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 April 5-11, 2020, according to data from STR.

In comparison with the week of April 7-13, 2019, the industry recorded a 69.8 percent drop in occupancy to 21 percent, a 45.6 percent decline in average daily rate (ADR) to $74.18, and an 83.6 percent fall in revenue per available room (RevPAR) to $15.61.

“There was not much of a change from last week. As we’ve noted, RevPAR declines of this severity are our temporary new normal,” said Jan Freitag, STR’s senior vice president of lodging insights. “Several weeks of data also point to occupancy in the 20 percent range to be the low point, and economy hotels holding at a higher occupancy level is the pattern right now.”

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Top 25 Market Performance — Week of April 5-11, 2020

Aggregate data for the Top 25 Markets showed steeper declines during the week of April 5-11, 2020: occupancy dropped 75.1 percent to 19.6 percent, ADR fell 51.7 percent to $81.58, and RevPAR declined 88 percent to $16.01.

Among those Top 25 Markets, Oahu Island, Hawaii, experienced the largest decrease in occupancy (down 90.9 percent) and the only single-digit absolute occupancy level (7.1 percent). The drop in occupancy resulted in the steepest decline in RevPAR (down 94 percent to $10.26).

San Francisco/San Mateo, California, posted the largest decrease in ADR (down 62.5 percent to $107.42).

Of note, occupancy in New York declined 71.7 percent to 24.8 percent. In Seattle, occupancy dropped 70.9 percent to 20.2 percent. Each of those absolute occupancy levels were higher than the previous week, which is likely attributable to an influx of medical workers and first responders requiring lodging in those cities.


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