Weekly U.S Hotel Results Continue to Worsen
The three key indicators for the U.S. hotel market for the week ending March 21 again all dropped by double-digit percentages compared with the week ending March 17-23, 2019, according to STR.
Occupancy was down 56.4 percent year over year to 30.3 percent. Average daily rate declined 30.2 percent to $93.41. Revenue per available room fell 69.5 percent to $28.32.
“RevPAR decreases are at unprecedented levels—worse than those seen during 9/11 and the financial crisis,” STR’s SVP of lodging insights Jan Freitag said Wednesday in a statement. “Seven of 10 rooms were empty around the country. That average is staggering on its own, but it’s tougher to process when you consider that occupancy will likely fall further. With most events canceled around the nation, group occupancy was down to 1 percent with a year-over-year RevPAR decline of 96.6 percent.”
Looking at the top 25 markets for meetings, which takes into account only the luxury and upper-upscale segments, the group segment occupancy was 0.7 percent, year over year. Each of those markets had group occupancies of below 2 percent and declines of more than 93.4 percent, except for Philadelphia, which was at 2.7 percent and down 89 percent, respectively.
For the overall U.S. hotel industry in the top 25 markets, the aggregate metrics showed steeper declines. Occupancy was down 66.3 percent year over year to 26.2 percent. ADR dropped 35.2 percent to $105.40. RevPAR tumbled 78.2 percent to $27.59. San Francisco/San Mateo posted the worst declines in all three indicators: 80.7 percent for occupancy, 44.7 percent for ADR and 89.3 percent for RevPAR.
New York had the second-steepest decrease in occupancy (80.5 percent) and tied New Orleans for the second-largest decline in RevPAR (86.5 percent).