by Calculated Risk on 11/04/2010 11:38:00 AM

Hotel occupancy is one of several industry specific indicators I follow ...

Important: Even though the occupancy rate is close to 2008 levels, 2010 is a more difficult year for the hotel industry than 2008. RevPAR (revenue per available room) is up 12.5% compared to the same week in 2009, but still down 3% compared to the same week in 2008 - and 2008 was a very difficult year for the hotel industry.

From HotelNewsNow.com: STR: Upper-upscale reports softer week

Overall the industry’s occupancy increased 11.7% to 57.9%, ADR was up 0.7% to US$99.84, and RevPAR ended the week up 12.5% to US$57.76.

The following graph shows the four week moving average for the occupancy rate by week for 2008, 2009 and 2010 (and a median for 2000 through 2007).

Click on graph for larger image in new window.

Notes: the scale doesn't start at zero to better show the change. The graph shows the 4-week average, not the weekly occupancy rate.

On a 4-week basis, occupancy is up 8.5% compared to last year (the worst year since the Great Depression) and 5.8% below the median for 2000 through 2007.

The occupancy rate is slightly above the levels of 2008, but RevPAR is still down 3% compared to the same week in 2008.

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