HENDERSONVILLE, Tenn.—The U.S. hotel industry suffered dramatic year-over-year drop-offs in each of the three key performance measurements during the week of 02-08 November, according to data from STR.
In year-over-year measurements, the industry’s average daily rate for the week tumbled 3.5 percent to finish the week at US$105.80 (US$109.66 during the same week in 2007). Meanwhile, occupancy for the week dropped 14.2 percent to finish the week at 56.9 percent (66.4 percent in 2007), and revenue per available room plummeted 17.2 percent to finish the week at US$60.25 (US$72.76 in 2007).
“Last week’s elections drove results down significantly,” said Brad Garner, vice president of operations/client services for STR. “Occupancy levels for Monday and Tuesday were off over 20 percent, with softness in the remaining days of the week approaching minus 10 percent.”
Some key findings for the week included:
• Houston, Texas, posted positive occupancy gains of 9.3 percent over last year on a 5.0-percent increase in ADR, while all other Top 25 markets experienced declines in occupancy.
• Interstate and Small Metro/Town locations were able to increase rates over last year by 2.5 percent and 1.8 percent, respectively, on declines of 11.0 percent in occupancy levels.
• The Luxury and Upper Upscale segments experienced RevPAR declines of 23.3 percent and 20.2 percent, respectively. The Economy segment experienced the lowest RevPAR decline at 12.2 percent.
• The Midscale without Food and Beverage segment had the best performance in ADR, declining 0.2 percent. The Luxury segment’s ADR fell 7.0 percent.
• Wednesday, 05 November was the best day of the week for ADR, posting an average rate of US$109.09; Sunday, 02 November, was the lightest ADR day at US$102.29.
View report: Weekly U.S. Lodging Report for week ending 08 November 2008
About STR & STR Global:
For more than 20 years, Smith Travel Research has been the recognized leader for lodging industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 36,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tenn., and STR Global is based in London. For more information, visit www.smithtravelresearch.com or www.strglobal.com.
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