Hotels: Occupancy Rate Down 6% Compared to Same Week in 2019

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by Calculated Risk on 11/04/2021 11:20:00 AM

Note: Since occupancy declined sharply at the onset of the pandemic, CoStar is comparing to 2019.

From CoStar: STR: Tampa Leads Top 25 US Markets in Weekly Performance

As anticipated ahead of Halloween, U.S. hotel performance fell week over week, according to STR’s latest data through 30 October.

Oct. 24-30, 2021 (percentage change from comparable week in 2019*):

o Occupancy: 58.9% (-5.7%)
o Average daily rate (ADR): US$127.70 (+1.5%)
o evenue per available room (RevPAR): US$75.28 (-4.3%)

Even with a drop in performance levels from previous weeks, comparisons with the matching week in 2019 improved because Halloween that year fell on a Thursday and created a more significant disruption in business travel and groups.

*Due to the steep, pandemic-driven performance declines of 2020, STR is measuring recovery against comparable time periods from 2019.

emphasis added

The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Click on graph for larger image.

The red line is for 2021, black is 2020, blue is the median, dashed purple is 2019, and dashed light blue is for 2009 (the worst year on record for hotels prior to 2020).

Note: Y-axis doesn’t start at zero to better show the seasonal change.

The occupancy rate will now decline seasonally into the new year.