STR reports U.S. hotel performance for the week ending 29 November 2008
In year-over-year measurements, the industry’s occupancy fell 22.6 percent to 41.5 percent (53.6 percent in 2007). Average daily rate dropped 12.2 percent to finish the week at US$90.84 (US$103.51 in 2007). Revenue per available room for the week decreased 32.0 percent to end the week at US$37.70 (US$55.48 in 2007).
“The numbers certainly aren’t the greatest, but they aren’t as bad as they may look,” said Mark Lomanno, president of STR. “Beyond the typical decline of the Thanksgiving holiday, the figures are in line with the downward trend the industry has been experiencing, especially when you consider the 28-day moving average.
“The last two weeks have been a bit of a roller coaster ride because the date of Thanksgiving shifted,” Lomanno added. “However, the industry appears to have settled into a pattern of declining year-over-year comparisons—a trend we expect to continue through at least the first quarter of 2009.”
Each of the six location segments experienced significant year-over-year drops for the week ending 29 November. Led by a 35.7-percent decline in occupancy at Airport locations, each segment experienced double-digit declines in occupancy rates: Urban (-32.4 percent), Suburban (-24.8 percent), Interstate (-11.9 percent), Resort (-12.9 percent), and Small Metro/Town (-13.9 percent). Hotels in the Interstate segment and the Small Metro/Town segments achieved gains in ADR of 1.3 percent and 2.3 percent, respectively. The other location segments weren’t as successful in ADR: Urban (-18.6 percent), Suburban (-13.0 percent), Airport (-21.3 percent), and Resort (-2.7 percent). All six location segments experienced drop-offs in RevPAR: Urban (-45.0 percent), Suburban (-34.6 percent), Airport (-49.4 percent), Interstate (-10.8 percent), Resort (-15.2 percent), and Small Metro/Town (-11.9 percent).
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