As the Covid-19 pandemic has firmly rooted itself in this novel American life the latest data from STR hotel research reveals the steep decline in occupancy and room rates from one week of curtailed travel across the country.
STR hotel industry data for March 8-14, 2020 compared to March 10-16, 2019 shows
- Occupancy: -24.4% to 53.0%
- Average daily rate (ADR): -10.7% to US$120.30
- Revenue per available room (RevPAR): -32.5% to $63.74
Declines impacted every hotel market segment.
Steepest declines happened in three cities most severely affected by Covid-19.
Seattle, Washington saw steepest declines in U.S. Occupancy (-55.0% to 32.9%), ADR (-24.7% to $109.28) and RevPAR (-66.1% to $35.97).
San Francisco/San Mateo, California was week’s second-steepest decreases in occupancy (-51.6% to 38.9%) and ADR (-24.2% to $176.38).
New York, New York, recorded third-largest decline in occupancy (-43.9% to 48.8%).
New Orleans, Louisiana, posted third-steepest drop in ADR (-22.8% to $138.11).
Next week will be worse as the U.S. hotel industry posts its first week of data after shelter-in-place orders for many California counties and other major markets of the USA went into effect resulting in the shut down of many hotels like W Hotel San Francisco.
Chip Rogers, CEO of American Hotel and Lodging Association, stated Covid-19 has had a deeper impact than 9/11 and the Great Recession combined with 10% to 20% occupancy declines in major markets across the U.S. By his estimate there might be 140 million empty rooms over the next 30 days. The hotel industry estimates 4 million jobs might be lost if hotel occupancy stays at 30% for 2020.
The hotel industry is lobbying for a $150 billion bailout.
Hotel News Now – Travel industry seeks $150b in aid as demand evaporates (March 18, 2019).