STR’s final 51-chart map of the year shows recent national/regional trends and many states finishing 2021 strong. Further, trend lines for revenue per available room (RevPAR) on a total-room-inventory (TRI) basis provide ample evidence of the hotel industry’s extraordinary rebound, particularly in the second half of the year.
Despite expectations for some travel hesitancy related to the spread of the Omicron variant, RevPAR for the four weeks ending with Week 50 (11 December) remained near (or above) 2019 levels for a vast majority of states. Of course, the most recent weekly index comparisons with 2019 are against normal, off-peak months. However, leisure travel and transient bookings late into the year remain comparatively strong, with the recent four-week performance significantly bolstered by a record-breaking Thanksgiving week.
The number of states outperforming their comparable 2019 RevPAR increased sharply since our November update, jumping to 34 states compared with 24 states last month. The total count of near misses (with a RevPAR indexed score of 90 or better) also increased to 43, up three states from the previous update. Maine led all indexed states with a US$18 RevPAR surplus from the comparable 2019 level (index: 138). Other top indexed states included Vermont (131), Utah (127) and Idaho (126).
Among the 50 states and the District of Columbia, only two RevPAR indices fell below 80 for this most recent four-week period: D.C. (62, up 17 points from last month) and New York (77, up 12). Industry lagging D.C. averaged US$82 RevPAR, which was almost US$50 below its comparable 2019 levels. Other states with notable month-over-month improvements in the index include the warmer markets of Hawaii (97, up 15 points), Arizona (87, also up 15 points) and Louisiana (119, up 14 points)
With five of six states approaching (or beating) their 2019 RevPAR levels, there is reason for celebration and a generally positive industry outlook as we close the books on 2021. Short-term expectations are that strong transient/leisure demand will continue to be major industry drivers as we begin 2022.
Of course, make sure to stay tuned to our Market Recovery Monitor for additional updates each week.
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STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.