Showing further effects of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of March 15-21, 2020, according to data from STR.
When compared with the week of March 17-23, 2019, the industry recorded the following:
- Occupancy: -56.4 percent to 30.3 percent
- Average daily rate (ADR): -30.2 percent to $93.41
- Revenue per available room (RevPAR): -69.5 percent to $28.32
“RevPAR decreases are at unprecedented levels—worse than those seen during 9/11 and the financial crisis,” says Jan Freitag, STR’s senior VP of lodging insights. “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 cancelled around the nation, group occupancy was down to 1 percent with a year-over-year RevPAR decline of 96.6 percent. The industry is no doubt facing a situation that will take a concerted effort by brands, owners, and the government to overcome.”
Aggregate data for the top 25 markets showed steeper declines across the metrics: occupancy (-66.3% percent to 26.2 percent), ADR (-35.2 percent to $105.40) and RevPAR (-78.2 percent to $27.59).
Photo: Gerd Altmann from Pixabay