Industry Update
External Article30 June 2020

Us Hotels Show Slight Uptick In May

The U.S. hotel industry saw only a slight improvement in May compared to the record lows set in April.

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1 min (HNN)

SALISBURY, Connecticut - States reopened, weekend occupancy soared and now COVID-19 numbers spike. More cases could impact business and group travel in H2. For now, we look at May and are grateful that the worst seems to behind us.

  1. US RevPAR decreases have been worse
    May RevPAR declined 71%, the second-steepest decline ever. The only positive about that number is that it is not 80% as we had reported in April. But that is about it.

And the weekly data is actually also showing results of better than 70% decreases.

But let's be clear, the number of COVID-19 cases is not decelerating. In some places it is actually accelerating, so the implications for the U.S. economy and the travel economy are less than clear. When the dust settles, will we need to acknowledge the fact that welcoming leisure travelers to beach resorts and bars in May without social distancing contributed to an increase in cases? And will the implication be then that some larger cities do not open up fully for a while, and then continue to restrict gatherings, hence further stymieing the group recovery? And will an increase in cases make CEOs more skittish about sending their teams back on the road?

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