STR reports U.S. hotel performance for the week ending 17 January 2009
“It was more of the same,” said Brad Garner, vice president of operations/client services at STR. “The economy is battering the hotel industry.”
“We are mildly disappointed by the performance of the Middle Atlantic and Southeast regions where we thought there would be more of an uplift heading into Martin Luther King Jr. Day weekend and Inauguration Day,” he added, “but we are still optimistic that we’ll see the true effect of the ‘Obama bounce’ in next week’s results.”
The year-over-year, double-digit drops in occupancy and RevPAR for the Total U.S. hotel industry carried over into each of the seven chain-scale segments:
- The Luxury segment posted the biggest declines in both measurements, with a 16.7-percent decrease in occupancy (57.7 percent) and a 22.4-percent fall in RevPAR (US$150.19).
- The Upper Upscale segment saw declines of 13.1 percent and 17.4 percent in occupancy and RevPAR, respectively.
- The Upscale segment experienced a 12.5-percent drop in occupancy (57.4 percent) and a 16.8-percent decreases in RevPAR (US$66.33).
- The Midscale with Food and Beverage segment saw occupancy fall 14.6 percent to 42.6 percent. RevPAR for the segment declined 16.3 percent to US$34.99.
- The Midscale without Food and Beverage segment saw drops of 13.3 percent and 14.6 percent in occupancy and RevPAR, respectively.
- The Economy segment experienced the smallest decreases in both measurements, with an 11.3-percent fall in occupancy (41.0 percent) and a 13.1-percent decline in RevPAR (US$20.86).
- The Independents segment saw drops of 13.3 percent and 17.5 percent in occupancy and RevPAR, respectively.
None of the seven chain-scale segments posted double-digit drops in ADR. The Luxury segment saw the biggest decrease at 6.8 percent (US$260.43), while the Midscale without Food and Beverage segment experienced the smallest decrease at 1.4 percent (US$86.50).
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Jeff Higley (STR)
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