by Calculated Risk on 12/17/2009 01:21:00 PM

From HotelNewsNow.com: New Orleans tops increases in STR weekly numbers

Overall, in year-over-year measurements, the industry’s occupancy fell 2.9 percent to 48.1 percent, Average daily rate dropped 5.9 percent to US$96.04, and Revenue per available room decreased 8.6 percent to US$46.22.

Click on graph for larger image in new window.

This graph shows the occupancy rate by week for each of the last four years (2006 through 2009 labeled by start of month).

Notes: Some of the holidays don't line up - especially at the end of the year.

Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com (Note: They have a free daily email too for hotel news)

The above graph shows two key points:

This is a two year slump for the hotel industry. Although occupancy is off 2.9% compared to 2008, occupancy is off about 9% compared to 2006 and 2007.

There is a distinct seasonal pattern for the occupancy rate. The occupancy rate is higher in the summer (because of leisure travel), and lower on certain holidays.

The HotelNewsNow press release also has this graph on occupancy variance compared to 2008.

For most of the year business travel (mid-week) has been off significantly more than leisure travel (weekends).

It now appears both categories are off about the same compared to last year.

This seems to be more evidence that the hotel industry has stabilized at this low level as far as occupancy rates, although room rates will still be under pressure because this is the lowest occupancy rate (annual) since the Great Depression.