Vision 2050 – 2nd Edition: The Recovery Year
The final U.S. lodging industry numbers for 2020 came out and RevPAR literally finished at half of where it finished in 2019—that's right, half! Occupancy was 66.1% at $131.17 average rate and RevPAR of $86.76. 2020 finished at 42% at a rate of $103.00, RevPAR was $43.26. The impact to the bottom line is easy to see in our bank accounts as breakeven has always been thought to be close to 60% occupancy but many forget the importance of rate to that equation.
By Bob Rauch, President of RAR Hospitality, R.A. Rauch & Associates, Inc.