by Calculated Risk on 4/02/2009 11:08:00 AM

First a quote:

"The deteriorating trends in revenue and earnings ... accelerated during the first quarter of 2009. We expect this situation to continue as long as competitors in the Las Vegas market follow a strategy of sacrificing ADR (average daily room rate) to maximize room occupancy ... " emphasis added
William L. Westerman, CEO, Riviera Holdings Corp, March 31, 2009

It's not just in Las Vegas ...

From HotelNewsNow.com: STR reports U.S. data for week ending 28 March

In year-over-year measurements, the industry’s occupancy fell 12.3 percent to end the week at 56.6 percent (64.6 percent in the comparable week in 2008). Average daily rate dropped 8.8 percent to finish the week at US$99.77 (US$109.34 in the comparable week in 2008). Revenue per available room for the week decreased 20.0 percent to finish at US$56.50 (US$70.61 in the comparable week in 2008).

Click on graph for larger image in new window.

This graph shows the YoY change in the occupancy rate (3 week trailing average).

The three week average is off 11.3% from the same period in 2008.

The average daily rate is down 8.8%, so RevPAR (Revenue per available room) is off 20.0% from the same week last year.

Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com