Bailout

Hotel Occupancy Off 8.4 Percent

By Anonymous

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.

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?

Full post as published by Calculated Risk on April 30, 2009 (boomark / email).