Hotel occupancy, rates and revenue continue drop in U.S.

www.etravelblackboard.us ^ | 09/15/09 | etravel

[TornadoAlley3]

Hotels in the U.S. posted a 1.4 decline in occupancy to 53.4 for the week of 30 August-5 September 2009 compared to the same period in the previous year.

The decline in occupancy was one of three declines in all three key performance measurements during the week according to Smith Travel Research (STR).

Average daily rate dropped 8.6 percent to finish the week at US$92.20 whilst revenue per available room for the week decreased 9.9 percent to US$49.28.

The market which reported the largest decreases in all three key metrics was Minneapolis-St. Paul, Minnesota-Wisconsin, which hosted the Republican National Convention 1-4 September 2008.

Occupancy fell 21.9 percent to 61.5 percent while ADR fell 49.2 percent to US$89.22 and RevPAR decreased 60.3 percent to US$54.88.

Norfolk-Virginia Beach, Virginia, reported the largest double-digit occupancy increase, jumping 16.5 percent to 54.8 percent; ADR up 4.2 percent to US$94.93; and up 21.5 percent in RevPAR to US$51.98.

Atlanta, Georgia was the only other market to report an ADR increase, up 7.2 percent to US$87.62.

Three markets posted ADR decreases of more than 20 percent: New York, New York (-30.1 percent to US$192.22); Denver, Colorado (-28.2 percent to US$82.47); and New Orleans, Louisiana (-24.1 percent to US$83.49).

[John123]

But everything is all better now! Bernanke just declared the recession over... /s

[Extremely Extreme Extremist]

I’m buying a fifth wheel and hitting the open road....no more hotels for me.

[coydog]

The recent reports about bedbugs and the larcenous habits of hotel staff would also have something to do with it.

[OCCASparky]

Yep--and as soon as the Titanic slipped under the waves, she stopped taking on water, too.

I get offers from Vegas all the time. They're not hurting THAT badly based on the room rates they're trying to charge, but the folks I know who work there say otherwise.

[Frantzie]

No Vegas until Harry Reid is unemployed. Vegas sucks anyway.

I was at an outside mall tonight and it was dead. Target’s parking lot was empty too.

Hope & Change.

[elkfersupper]

I would occasionally stay in a hotel if they would let you smoke in their bars, restaurants, rooms, or even outside.

Since the majority of them won't anymore, they can just reserve their "hospitality" for the brain-dead lefties who want their government to pay for their room, food and fun.

We'll see how long that lasts after right-minded folks eventually starve the beast.

[PLK]

The recent reports about bedbugs and the larcenous habits of hotel staff would also have something to do with it.

Bingo. I used to love to travel and stay in hotels. Now I dread and avoid it whenever possible. We hook up with friends and family preferentially over that every time.

[Jimmy Valentine]

This is a tough time for the hospitality industry. RevPar, i.e. revenue per available room is down in the 45% range. Generally, a property needs 55% to run break even.

Even destination properties are suffering. If you are running a second tier flag at a remote exit on the interstate, you are really sucking sand in your pump.