Finance & DevelopmentFinanceSTR: U.S. Hotel Demand Rises for Fifth Consecutive Week

STR: U.S. Hotel Demand Rises for Fifth Consecutive Week

HENDERSONVILLE, Tenn. — STR data for the week of May 10-16, 2020, 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.

U.S. Hotel Industry KPIs
May 10-16, 2020 vs. May 12-18, 2019

 

Occupancy: -54.1% to 32.4%
ADR: -42.4% to $77.55
RevPAR: -73.6% to $25.12

Compared to the week of May 12-18, 2019, occupancy declined 54.1 percent to 32.4 percent, average daily rate (ADR) fell 42.4 percent to $77.55, and revenue per available room (RevPAR) fell 73.6 percent to $25.12.

Previous weekly U.S. weekly occupancy levels were: 30.1 percent (May 3-9), 28.6 percent (April 26-May 2), 26 percent (April 19-25), 23.4 percent (April 12-18), and 21 percent (April 5-11).

“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 vice president 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.”

Aggregate data for the Top 25 Markets during the week of May 10-16 showed larger year-over-year declines than the national averages: occupancy declined 61.2 percent to 30.1 percent, ADR dropped 50.9 percent to $82.46, and RevPAR fell 81 percent to $24.82).

Among those Top 25 Markets, Oahu Island, Hawaii, experienced the largest year-over-year drop in occupancy (down 86 percent to 11.7 percent), which resulted in the steepest decrease in RevPAR (down 91.2 percent to $15.99). Boston posted the largest decline in ADR (down 64.6 percent to $87.49). Of note, absolute occupancy in New York came in at 43.6 percent for the week of May 10-16—basically flat from the previous week (43.7 percent). The Seattle market recorded occupancy at 27.6 percent—up from 24.8 percent the week prior.


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