Oct122016

Where in USA/Europe hotel rates are hot and cities not

Another piece of hotel industry room rates data points I find interesting is also from STR publications showing average daily rates for USA hotels in August 2016 and over past year. Average daily rate is over $125.42 per night across all hotels in the USA, however, occupancy dropped ever so slightly, by 0.2% to 66.9%. That average daily rate is up from $107 average rate in 2008, before room rate drops in the 2009 recession.

Hotels are expensive. Hotel loyalty programs still allow me to spend less than $100 per night average for my travels and those stays even included several suites during the past year.

USA Hot and Not

San Francisco is hot for hotels. The city’s hotels lead the nation in occupancy at 89.3% in August, Hotel News Now (Sep 21, 2016). San Francisco is a city I plan to redeem a free Hyatt stay before year’s end.

Philadelphia is hot, leading the USA for occupancy growth to 76.7%, along with 11.3% room rate increase to $132.68.

Tampa, Los Angeles, Nashville and Detroit are other cities with happy hoteliers.

Oahu, Hawaii is most expensive in USA with average room rate $243.51.

Where It is Not Happening in Hotel Travel

New Orleans had biggest rate drop in USA top markets for August, down to $106.29. No wonder! It is sweltering there in August. I lived at the Hyatt Regency New Orleans for 7 nights in June. Nice skyscraper views.

Houston, Texas had largest drop in occupancy by 8.8% to 59.7%.

Those 3% rate increases over the past year are pushing hotel rates above the general rate of inflation. Hotel travel gets more expensive. Helps that airfares are so low in 2016. Hotel loyalty programs help me find good hotel rate discounts most every place I travel. Still have not traveled any place where I had to turn to Airbnb for a better lodging deal.

Europe Hot and Not 

Hotel News Now July 2016 – Europe Hotel Performance

Poland was hot in July with 77.3% occupancy. I was one of the hotel occupants in Krakow during July 2016. Krakow saw an amazingly large room rate increase at 42% for July. The reason there can be such a large room rate increases in Poland is due to the overall average room rates in Poland being among the lowest in Europe. There are many major hotel chain branded hotels with rates commonly under $50 per night in Poland.

I booked a good deal for my stay in Krakow redeeming 15,000 IHG Rewards Club points per night for a $150 room rate. Buying 15,000 IHG points for $90 is a recurring opportunity throughout the year. Hotels were so high priced in Krakow in July due to World Youth Day flooding the city with Catholics from around the globe. Pope Francis came to Krakow a few days after our stay. Doubt he visited the Holiday Inn Krakow.

London was hot in July. I passed through the city twice that month. Hotel occupancy was flat, but high at 88.2%. I stayed at the Radisson Edwardian London Heathrow on United Airlines dime by giving up my seat to Los Angeles. I spent a day hanging out walking around central London. London is amazing for its wide variety of tourists. You see the world in London. Average room rates were 155.47 GBP in July 2016, which is $190 USD today and was probably even more dollars with July’s exchange rate. Even with those high average daily rates in London, the luxury hotel segment had the greatest gains. I flipped off a guy driving a Rolls or Bentley by the Ritz Hotel who wanted to cross the road before me.

Portugal was hot in July by bucking the European trend for declining occupancy. 83.4% of hotel rooms occupied and double-digit rate increases to 121.89 EUR or $135 per night. Upper Midscale hotels saw both highest occupancy increase and rate growth.

Madrid might be hot. The city saw a decline in occupancy overall to 65.4%, but much of that is due to double-digit group travel decline, while leisure travel is up double digits. A large increase in luxury hotel rooms resulted in a large decrease in occupancy. Might be room for some luxury discounts in Madrid, especially through online travel agency sites.

Prague is budget hot. Occupancy dropped slightly, but this city runs at 88.8%, so book your room early. Prague is one city where I splurged once for a luxury hotel room stay for a week. Economy and midscale hotels are the hottest item here. Room rates average 2,052 CZK or $83.67 per night.

 

 

 

 

About Ric Garrido

Ric Garrido of Monterey, California started Loyalty Traveler in 2006 for traveler education on hotel and air travel, primarily using frequent flyer and frequent guest loyalty programs for bargain travel. Loyalty Traveler joined BoardingArea.com in 2008.

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Comments

  1. @ Ric — What does the temperature have to do with the drop in New Orleans from August 2015 to August 2016? It’s always hot as hell in August in New Orleans.

  2. Okay. I think this data is good if you are in the hotel business.

    I was trying to figure out if there was some impact on travellers. Guess not (not any that I can see).

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