HENDERSONVILLE, Tenn. — The U.S. hotel industry reported significant year-over-year declines across three key performance metrics during the week of April 19-25, 2020, according to data from STR.
In comparison with the week of April 21-27, 2019, the industry recorded a 62.2 percent decline in occupancy to 26 percent, a 42.9 percent decline in average daily rate (ADR) to $73.61, and a 78.4 percent decline in revenue per available room (RevPAR) to $19.13.
U.S. Hotel Industry KPIs
April 19-25, 2020 vs. April 21-27, 2019
Occupancy: -62.2% to 26.0%
ADR: -42.9% to $73.61
RevPAR: -78.4% to $19.13
Year-over-year declines were less steep than previous weeks due to a comparison with the time of Passover in 2019. Additionally, absolute occupancy rose slightly from the levels of the previous two weeks (23.4 percent and 21 percent).
“Demand has grown slightly across the country during the last two weeks, which could provide some hope that the levels seen in early April were indeed the bottom—especially with some states now moving to ease social distancing guidance,” said Jan Freitag, STR’s senior vice president of lodging insights. “The 1.4 million additional room nights sold the last two weeks only represent around 100,000 new rooms occupied per night, but gains even that small are certainly better than further declines.”
“Five states—California, Texas, New York, Florida, and Georgia—represent 40 percent of that demand gain from the last two weeks,” Freitag continued. “The list of hotel demand generators is long, but in general, it is not unreasonable to assume that part of the increased business is coming from essential workers, homeless housing initiatives, and government-contracted guests.”
Top 25 Market Performance — April 19-25, 2020
Aggregate data for the Top 25 Markets showed larger declines than the national averages during the week of April 19-25, 2020: occupancy (down 67.2 percent to 24.8 percent), ADR (down 48.8 percent to $80.46), and RevPAR (down 83.2 percent to $19.95).
Among those Top 25 Markets, Oahu Island, Hawaii, experienced the largest drop in occupancy (down 87.5 percent) during the week of April 19-25, and the only single-digit absolute occupancy level (9.8 percent). The decline in occupancy resulted in the steepest decrease in RevPAR (down 92.1 percent to $13.95). Miami/Hialeah, Florida, posted the largest decline in ADR (down 62 percent to $85.94). Occupancy in New York was down 53.2 percent to 41 percent. The market’s absolute occupancy came in at 33.3 percent the previous week. In Seattle, occupancy dropped 69 percent to 22.4 percent.