HENDERSONVILLE, Tennessee—The U.S. hotel industry experienced declines in all three key performance measurements, including double-digit drops in occupancy and revenue per available room, during the week of 4-10 January 2009, according to data from STR.
Occupancy fell 16.9 percent from the comparable period a year ago to finish the week at 42.2 percent (50.9 percent in 2008). RevPAR dropped 22.9 percent to end at US$41.50 (US$53.82 in 2008). While not in the double-digit range, average daily rate experienced a decline as well, falling 7.2 percent to US$98.25 (US$105.83 in 2008).
The performances of the chain-scale segments mirrored the industry averages—none posted increases in any of the three key performance metrics compared to the same period last year:
• Luxury segment: occupancy -24.4 percent (46.9 percent); ADR -8.9 percent (US$254.51); RevPAR -31.1 percent (US$119.44).
• Upper Upscale segment: occupancy -20.8 percent (47.8 percent); ADR -8.6 percent (US$147.74); RevPAR -27.6 percent (US$70.67).
• Upscale segment: occupancy -22.0 percent (45.4 percent); ADR -7.5 percent (US$112.53); RevPAR -27.8 percent (US$51.10).
• Midscale with Food and Beverage segment: occupancy -17.0 percent (37.1 percent); ADR -3.1 percent (US$79.33); RevPAR -19.5 percent (US$29.40).
• Midscale without Food and Beverage segment: occupancy -18.5 percent (42.5 percent); ADR -3.1 percent (US$84.00); RevPAR -21.0 percent (US$35.66).
• Economy segment: occupancy -10.3 percent (39.5 percent); ADR -1.7 percent (US$50.49); RevPAR -11.8 percent (US$19.95).
• Independents segment: occupancy -15.4 percent (41.8 percent); ADR -7.0 percent (US$96.49); RevPAR -21.3 percent (US$40.36).
Among Top 25 Markets, all but two experienced decreases in each of the three key performance metrics. Miami-Hialeah, Florida and Norfolk-Virginia Beach, Virginia, experienced near-flat gains in occupancy (+0.9 percent and +0.3 percent, respectively). New Orleans, Louisiana, posted the biggest occupancy decline, from 61.1 percent in the comparable week in 2008 to 43.3 percent in 2009 (-29.2 percent).
View weekly Hotel Review for week ending 10 January 2009.
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, Tennessee, and STR Global is based in London. For more information, visit www.strglobal.com.
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