RSS Feed by Calculated Risk on 4/23/2009 01:55:00 PM
Thursday, April 23, 2009
Hotel Occupancy Off 11%
From HotelNewsNow.com: STR reports U.S. data for week ending 18 April 2009
In year-over-year measurements, the industry’s occupancy fell 10.7 percent to end the week at 57.4 percent. Average daily rate dropped 10.3 percent to finish the week at US$97.25. Revenue per available room [RevPAR] for the week decreased 19.9 percent to finish at US$55.83.
emphasis added
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 11.1% from the same period in 2008.
The average daily rate is down 10.3%, so RevPAR is off 19.9% from the same week last year.
When the Q1 advance GDP report is released on Wednesday (April 29th), I expect to see a sharp in decline in non-residential structure investment. The underlying details will be released a couple of days later, and I expect investment in lodging to be hit especially hard. Why build new hotels when the occupancy rate is 57%?
