The U.S. hotel industry posted double-digit declines in all three key performance measurements during the week 5-11 April 2009, according to data from Smith Travel Research (STR). In year-over-year measurements, the industry’s occupancy fell 17.9 percent to end the week at 52.6 percent (64.1 percent in the comparable week in 2008). Average daily rate dropped 12.5 percent…
The U.S. hotel industry posted double-digit declines in all three key performance measurements during the week 5-11 April 2009, according to data from Smith Travel Research (STR).
In year-over-year measurements, the industry’s occupancy fell 17.9 percent to end the week at 52.6 percent (64.1 percent in the comparable week in 2008). Average daily rate dropped 12.5 percent to finish the week at US$96.60 (US$110.36 in the comparable week in 2008). Revenue per available room for the week decreased 28.1 percent to finish at US$50.85 (US$70.76 in the comparable week in 2008).
Among the Top 25 Markets, Orlando, Florida, Norfolk-Virginia Beach, Virginia, and Detroit, Michigan, were the only markets to report an increase in any of the three key measurements. Orlando increased 4.1 percent in occupancy to 79.3 percent (76.2 percent in 2008). Norfolk-Virginia Beach occupancy was up 3.9 percent to 56.9 percent (54.7 percent in 2008). Detroit rose 6.0 percent in ADR to US$93.49 (US$88.23 in 2008).
Of the remaining Top 25 Markets, New Orleans, Louisiana, reported the largest decrease in occupancy; it was down 38.4 percent to 50.4 percent (81.8 percent in 2008). Norfolk-Virginia Beach reported the smallest decrease in ADR, it dropped 3.9 percent to US$80.14 (US$83.43 in 2008). New York ADR was down 26.8 percent to US$205.02 (US$279.96 in 2008) and New Orleans ADR dropped 26.7 percent to US$99.51 (US$135.83 in 2008), reporting the largest decreases in ADR. Norfolk-Virginia Beach RevPAR fell 0.2 percent to US$45.58 (US$45.68 in 2008), reporting the smallest decline in RevPAR. New Orleans reported the largest RevPAR decline, which was down 54.9 percent to US$50.15 (US$111.10 in 2008). Three other markets reported RevPAR decreases of more than 40 percent: Phoenix, Arizona (-41.5 percent to US$65.67); Denver, Colorado (-40.7 percent to US$42.54); and Nashville, Tennessee (-40.3 percent to US$40.81).
Among the chain-scale segments, the Upscale segment reported the largest decrease in occupancy, which was down 22.0 percent to 56.9 percent. The Upper Upscale segment reported the largest decreases in both ADR and RevPAR, down 18.0 percent to US$138.88 and 35.9 percent to US$82.95, respectively.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
