HENDERSONVILLE, Tenn. — The U.S. hotel industry reported mixed year-over-year results during the week of February 23-29, 2020, according to data from STR. In comparison with the week of February 24 through March 2, 2019, occupancy declined 1.7 percent to 64.1 percent, average daily rate (ADR) increased 1.6 percent to $129.67, and revenue per available room (RevPAR) dipped 0.2 percent to $83.16.
Occupancy and ADR declines for the week were most pronounced on the weekend (February 28-29). Also of note, U.S. airport hotels reported a 3.8 percent decrease in occupancy for the week.
Key Performance Indicators
U.S. hotel results for Feb. 23-29, 2020 vs. Feb. 24-March 2, 2019
Occupancy: -1.7% to 64.1%
ADR: +1.6% to $129.67
RevPAR: -0.2% to $83.16
“We continue to monitor performance in proximity to U.S. airports for early indicators of a coronavirus impact,” said Jan Freitag, STR’s senior vice president of lodging insights. “What stands out are the demand patterns in airport markets that see a greater volume of international traffic. We saw declines in airport markets like Newark, Chicago, Denver, San Francisco, and New York, while markets with a lot of domestic traffic like Orlando, Dallas, and Atlanta were actually up for the week. The coming weeks will be important to monitor for more defined trends, especially with increased coverage around the outbreak and potential event schedule adjustments.”
Among the Top 25 Markets, San Francisco/San Mateo, Calif., posted the week’s largest RevPAR gain (up 28.1 percent to $240.24), driven by the highest rise in ADR (up 28.6 percent to $305.10). Occupancy in the market declined slightly (down 0.4 percent to 78.7 percent) year-over-year for the week of February 23-29, 2020.
“San Francisco is interesting because group occupancy jumped year over year while transient occupancy was down by double digits,” Freitag said. “At the same time, ADR was up significantly in each segment. The thought there is that those already committed to staying in the market for event-related travel went through with their trip, while leisure travelers perhaps altered their plans.”
Aligned with the aforementioned increased airport hotel demand, Orlando, Fla., experienced the highest rise in occupancy (up 6.7 percent to 86 percent) and the second-largest jump in RevPAR (up 11.8 percent to $126.03). Oahu Island, Hawaii, saw the only other double-digit increase in RevPAR (up 10.8 percent to $193.28), due primarily to the second-largest gain in ADR (up 7.5 percent to $234.47). Of note, Los Angeles/Long Beach, Calif., registered a 2.2 percent lift in occupancy to 79.2 percent.
Minneapolis/St. Paul, Minnesota-Wisconsin, reported the steepest decrease in occupancy (down 8.2 percent to 56.4 percent). New Orleans recorded the only double-digit drop in ADR (down 12.7 percent to $174.59). Chicago registered the largest decline in RevPAR (down 12 percent to $61.71). Of note, New York saw a 0.8 percent dip in occupancy to 77.1 percent.