Domestic Hotel Occupancy Was Already Down Sharply Last Week

Not surprising.

Reflecting concerns and cancellations around the COVID-19 outbreak, the U.S. hotel industry reported negative year-over-year results in the three key performance metrics during the week of 1-7 March 2020, according to data from STR.

In comparison with the week of 3-9 March 2019, the industry recorded the following:

• Occupancy: -7.3% to 61.8%
• Average daily rate (ADR): -4.6% to US$126.01
• Revenue per available room (RevPAR): -11.6% to US$77.82

Performance declines were uniform across chain scales, classes and location types.

The biggest decline in revenue per room – a whopping -45.5 – was registered in San Francisco. Average daily rates there were down 30.4% to $213. Seattle occupancy was down 26.4%, with hotels half empty, and rates down 34.8% to ~ $68.

Out of the top 25 markets, average rates went up in Oahu 1.7% and Norfolk, Virginia by 1.3%. The only two markets with occupancy growth were Detroit and Nashville.

Numbers announced next week will be worse.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Gary, worth an article highlighting Marriott’s seeming paralysis with communicating to its members? Echoes of the incompetence and denial in the WH right now.

  2. I booked the Hotel Indigo Albany Airport for $72. The rate has never been that low. Considering that the lower end hotels run $65, I think I did good. Oh, and 5000 bonus points too. This is a non-refundable rate, that of course I can cancel.

  3. Meanwhile rates in Vegas seem to be the same and the resort fees are deterring me from doing a trip there.

  4. @UA-NYC i am waiting. hilton and ihg came out with policies yesterday. it’s almost inconceivable that marriott will not follow today.

  5. Gary, Marriott C-suite leadership is so incompetent that none of “us” are surprised.

    Takes like 10 min for a decent corporate PR person to craft an email that “CEO of the Year” Arne could send out, doesn’t even have to be heavy on details.

  6. Nashville occupancy was up because of the tornadoes. I’m staying near Disneyland next week and am looking forward to the ghost town!

  7. Booked a last minute long weekend in Kailua-Kona because of some unbelievable airfare. Sea-Tac airport is a ghost town, but flights to Hawaii are full. Found hotels almost full (Marriott Waikoloa sold out). We’re at the Waikoloa Hilton in $400 rooms. No discounts and only nominal upgrade. Front desk personnel told me they have not seen a dip this season.

  8. I work in event marketing and this hit to the industry is hard to comprehend for all of us. Every single event we work on postponed or outright canceled. I flew to Anaheim a few weeks ago, show was canceled, so I flew home the next day. Philadelphia, DC, LA, Vegas events all the same. About 45-50 hotel nights I canceled. Just an unreal time for us and hopefully our division survives the short term problems only to come away with more work than we can handle once everyone tries to rebook events at the same time in q3-4.

    Just accounting for me as one person, that’s a conservative estimate of $10,000 lost revenue for hotel room alone, let alone meals and transportation.

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