Breaking Travel News

US hotels post declines in occupancy and revenues

US hotels post declines in occupancy and revenues

The U.S. hotel industry posted declines in all three key performance measurements during November, according to data from STR.

Occupancy fell 4.3% to end the month at 49.5% compared to November 2008.

Average daily rate dropped 8.3% to finish the month at US$93.60.

And revenue per available room for the month decreased 12.3% to US$46.33.

The only segment to buck the trend was the luxury segment, where occupancy rose 1.1% to 59.4%.


The ‘Upper Upscale’ segment’s occupancy ended the month with a 0.2% decrease to 60.3%.

Bobby Bowers, senior vice president at STR, said:

“Although we’re seeing marginal improvement in industry performance, November numbers were somewhat disappointing.

“Occupancy has declined at a slower rate during each of the past three months, but there’s not much sign of life on the ADR front.

“Industry RevPAR fell more than 25% when November 2009 and November 2008 numbers are combined.

“As we move through 2010, industry occupancy should flatten and move into positive territory as supply growth slows and demand gains traction.

“Only then will room rates gain the foundation needed for positive growth.”

Among the Top 25 Markets, Detroit, Michigan, experienced the largest occupancy increase, rising 5.6 % to 47.3 %, followed by Oahu Island, Hawaii (+5.3 % to 72.6 %), and San Francisco/San Mateo, California (+4.7 % to 66.3 %).

Houston, Texas, posted the only double-digit occupancy decrease, falling 25.6% to 52.1%.

It was a similar story in the UK, as previously reported on Breaking Travel News.

Combined data for October and November from PKF Hotel Consultancy Services showed that average room rate was down 7.8% from £65.66 to £60.52.

Occupancy levels also fell, down 3.5% from 71.4% to 68.9%.

And room yield figures were down 11.1% year on year