U.S. Hotels Hit Their Lowest Weekly Occupancy – Ever

U.S. hotel revenue and occupancy data has finally fully caught up to the disaster everyone has been expecting.

A same-week comparison with the prior year shows that last week:

  • Occupancy fell 67.5% to 22.6%
  • Average daily rate: down 39.4% to $79.92
  • Revenue per available room: down 80.3% to $18.05

More than 75% of hotel rooms in the U.S. were empty last week. And things were even worse in the top 25 hotel markets (19.6% occupancy, and revenue per available room down nearly 86%).

The worst of the worst hit major cities?

New Orleans, Louisiana, recorded the steepest decline in RevPAR (-92.8% to US$10.27), due primarily to the second-largest decreases in occupancy (-84.9% to 12.7%) and ADR (-52.3% to US$80.74).

Oahu Island, Hawaii, experienced the steepest drop in occupancy (-86.4% to 10.5%).

Miami/Hialeah, Florida, posted the largest decline in ADR (-57.9% to US$116.64).

Of note, occupancy in New York, New York, was down 81.8% to 15.2%. In Seattle, Washington, occupancy dropped 76.6% to 18.5%.

80,000 Marriott points used to get you a free night outside of peak season. Now it transfers title to the whole hotel.

Remember the guy who claimed to own a New York hotel because he spent the night there, and got a court to agree? There are probably owners now who’d just relinquish the keys.

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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  1. Aren’t Marriott Bonvoy point redemptions based on average room revenue for the prior year? So maybe next year we’ll see some multiple category drops on properties? Just curious

  2. Unlike airlines, they’re not lowering prices as much.

    Checked for next week and nothing under 100 a night in Boston proper. Yotel trying to charge 170, lol.

    And that’s before taxes

  3. @James S

    This is a case where dropping rates isn’t going to stimulate demand, so you may as well get what you can from those who have to pay.

  4. @Dan, I disagree

    Many of us in urban areas are trapped at home in small apartments with roommates. The idea of sheltering in place in a new environment for a couple of nights is attractive.

    Or could be, if the price was right.

  5. @tim, that was the way Starwood determined the amount of points. Marriott uses number of award stays. Therefore the more popular a property is, determined by number of award stays, determines the amount of points required.

  6. If you’re looking for an attractive rate, do NOT go to the company website for 3rd party booking engines (hotel.com, booking.com…). Instead call the hotel directly and ask for the front desk manager. Let them know if you’re staying multiple nights and the best rate you’re able to pay (generally 20% – 25% off the published rate on their website). Managers will negotiate and help you out.

    As a owner/ manager, we don’t lower rates on the website because it can bring in inappropriate clientele that are looking to party and damage your rooms. Plus if the rate is lowered on the website and the guest books the room through a 3rd party, it does not leave enough margin for us to recoup our costs.

    The hotels would love to cater to you, so give us a call directly. Yes, I know old school but it works.

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