Resort downturn accelerates during troubled economy
By Martha Lomanno | hotelnewsnow.com
Since 2005, resort properties throughout the United States have been experiencing declines in all three key hotel performance measures, as demand has decreased significantly. In light of the current economic state, this decline has become more severe. Teamed with the large supply increases throughout the resort segment, occupancy and revenue per available room seem to be declining further—though hopefully only for a short time. As can be seen from STR Global data, resort properties have endured huge declines of occupancy, average daily rate and RevPAR since 2007. The figures began to drop off slowly around 2005, decreasing severely into negative territory around 2008 when economic conditions began to worsen. Unfortunately, many resorts have succumbed to discounting, driving down ADR. With demand at an all-time low, many resort operators believe this is the only option for maintaining occupancy.