Demand Trickle Slightly Lifts US Hotels In July
U.S. hotels performance continued to be slightly better month-over-month in July as the luxury segment was able to stand firm on rates.
U.S. hotels in July continued their steady performance improvement, STR data shows. The trends continued into August as occupancy hit 50% in the week ending 15 August, reflecting growing demand amid ongoing summer travel.
NASHVILLE, Tennessee - U.S. hotels in July continued their steady performance improvement, STR data shows. (STR is the parent company of Hotel News Now.)
The trends continued into August as occupancy hit 50% in the week ending 15 August, reflecting growing demand amid ongoing summer travel.
Operators, however, are preparing for a post-Labor Day slump.
Room demand is increasing, and occupancies are slowly rising, but the metric we don't really talk about much is average daily rate. In July, ADR decreased around 25% from July 2019, which probably reflects the mix shift in the consumers—away from corporate to more leisure. This implies that as corporate demand returns, we will see some pricing power on the upper end of the segment scale, which could then lift performance once again.
1. Small victories in July
July revenue per available room declined 52%, a slightly smaller decrease than was recorded in June. The weekly data shows RevPAR change is now firmly better than -50%.