HENDERSONVILLE, Tenn. — STR data for the week of May 31-June 6 showed another small rise from previous weeks in U.S. hotel performance. Year-over-year declines remained significant, although not as severe as the levels recorded previously: Occupancy dropped 45.3 percent to 39.3 percent; average daily rate (ADR) fell 35.9 percent to $85.01; and revenue per available room (RevPAR) declined 65 percent to $33.43.
U.S. Hotel Industry KPIs
May 31-June 6, 2020 vs. June 2-8, 2019
Occupancy: -45.3% to 39.3%
ADR: -35.9% to $85.01
RevPAR: -65% to $33.43
Previous U.S. weekly occupancy levels* were: 36.4 percent (May 24-30), 35.3 percent (May 17-23), 32.3 percent (May 10-16), 30.3 percent (May 3-9), 28.8 percent (April 26-May 2), 26.2 percent (April 19-25), 24.4 percent (April 12-18), and 22 percent (April 5-11).
“Not much different from previous weeks, occupancy continued to climb toward the 40 percent mark with noticeably higher levels on Friday and Saturday,” said Jan Freitag, STR’s senior vice president of lodging insights. “The lower end of the market continued to lead, with economy properties finally selling more than half of their rooms again, although all hotel classes were comfortably above 20 percent. Drilling down to the submarket level, the highest occupancy levels were recorded in various pockets of New York City as well as popular leisure spots in Florida, Texas, and South Carolina. Thanks to higher demand, one submarket, West Palm Beach, showed a 21 percent year-over-year ADR increase for the entire week.
“Once again, there wasn’t a significant week-to-week change in the markets that were the focus of protests and unrest,” Freitag added. “Like we noted last week, there was not a great deal of demand in downtown areas previously, and most of the major metros showed small gains from the previous week.”
Top 25 Market Performance — Week of May 31-June 6, 2020
Aggregate data for the Top 25 Markets showed lower occupancy (35.4 percent) than the national average, but slightly higher ADR ($88.54).
Seven of those markets saw occupancy levels above 40 percent: Norfolk/Virginia Beach, Va. (48.4 percent); New York (47.1 percent); Phoenix (44.7 percent); Philadelphia (42.8 percent); Tampa/St. Petersburg, Fla. (41.8 percent); Atlanta (41.4 percent); and Detroit (40.8 percent).
Markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (10.6 percent); Orlando, Fla. (23.5 percent); and Boston (24 percent).
Of note, in Seattle occupancy was 29.5 percent—up slightly from 28.1 percent the week prior.
*Data updated on June 10, 2020