Finance & DevelopmentFinanceSTR: U.S. Hotel Occupancy Continues Modest Gains in First Full Week of...

STR: U.S. Hotel Occupancy Continues Modest Gains in First Full Week of May

HENDERSONVILLE, Tenn. — STR data for May 3-9, 2020 showed continued modest gains in U.S. hotel occupancy compared with previous weeks, but a similar level of year-over-year declines across three key performance metrics.

In comparison with the week of May 5-11, 2019, the industry recorded a 55.9 percent decline in occupancy to 30.1 percent; a 42.1 percent drop in average daily rate (ADR) to $76.35; and a 74.4 percent fall in revenue per available room (RevPAR) to $22.95.

U.S. Hotel Industry KPIs
May 3-9, 2020 vs. May 5-11, 2019

 

Occupancy: -55.9% to 30.1%
ADR: -42.1% to $76.35
RevPAR: -74.4% to $22.95

U.S. hotel occupancy levels for previous weeks came in at 28.6 percent for April 26-May 2, 26 percent for April 19-25, 23.4 percent for April 12-18, and 21 percent for April 5-11.

“The industry reported its fourth consecutive week-to-week increase in demand as the slow and steady ascent in national occupancy continued,” said Jan Freitag, STR’s senior vice president of lodging insights. “More people are flying, as shown in daily checkpoint counts from the TSA, and more people are staying in hotels for a variety of purposes—the weekly number of rooms sold topped 10 million for the first time since the end of March. The markets benefiting more from leisure sources in areas with more relaxed distancing measures will see a sharper recovery line than others. Overall, the recovery will be uneven across the country.”

Top 25 Market Performance — May 3-9, 2020

Aggregate data for the Top 25 Markets showed larger year-over-year declines than the national averages for the week of May 3-9: occupancy fell 63.2 percent to 27.9 percent, ADR dropped 49.5 percent to $82.68, and RevPAR dived 81.4 percent to $23.07.

Among those Top 25 Markets, Oahu Island, Hawaii, experienced the largest drop in occupancy (down 87.1 percent to 10.3 percent), which resulted in the steepest decrease in RevPAR (down 91.2 percent to $15.22). Boston posted the largest decline in ADR (down 59.8 percent to $88.45). Of note, absolute occupancy in New York was 43.7 percent—down slightly from 44.9 percent the previous week. In Seattle, occupancy was 24.8 percent—up from 23.8 percent the week prior.

 


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