Hotel Occupancy Off 8.4 Percent

From HotelNewsNow.com: STR reports U.S. data for week ending 25 April

In year-over-year measurements, the industry’s occupancy fell 8.4 percent to end the week at 59.4 percent. Average daily rate dropped 6.1 percent to finish the week at US$100.44. Revenue per available room [RevPAR] for the week decreased 14.1 percent to finish at US$59.67.

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 9.6% from the same period in 2008.

The average daily rate is down 6.1%, so RevPAR is off 14.1% from the same week last year.

The Q1 advance GDP report showed a 44.2% annualized in decline in non-residential structure investment, and I expect lodging investment to decline even more over the next 18 to 24 months. Why build more hotels with RevPAR off 14% YoY?

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