Latest News
HomeMarch 31, 2003 – Hotel Revenues Slide

March 31, 2003 – Hotel Revenues Slide

U.S. hotel room rates and occupancy both declined sharply in the first week of the war, according to a survey conducted by Smith Travel Research. Revenue per available room, which reflects prices paid for occupied rooms, fell 8.4 percent compared to a year ago to $51.76 in the week ending March 22. The high-end properties in the biggest cities, which are also the biggest money-makers, did even worse. Room revenues at luxury hotels were down 10.3 percent. Urban hotels overall saw a decline of 11.8 percent and revenues in the bellwether market of New York tumbled 12.4 percent. In the week ending March 22, overall hotel occupancy dropped 4.8 percent and the average daily room rate fell 3.8 percent. The industry has been weak for more than a year, but recently occupancies had been stronger prior to the start of the war.