The Canadian hotel industry posted decreases in all three key performance measurements during the week of 5-11 April 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 20.8 percent to end the week at 49.2 percent. Average daily rate dropped 8.6 percent to finish the week at CAD$116.19. Revenue per available room for the week decreased 27.6 percent to finish at CAD$57.13.
The U.S. hotel industry posted declines in all three key performance measurements during the week of 29 March-4 April 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 9.9 percent to end the week at 56.2 percent (62.3 percent in the comparable week in 2008). Average daily rate dropped 9.0 percent to finish the week at US$98.79 (US$108.59 in the comparable week in 2008). Revenue per available room for the week decreased 18.0 percent to finish at US$55.49 (US$67.68 in the comparable week in 2008).
Hotel owners and management companies are accelerating efforts to fortify cash positions in a bid to survive the current downturn and to strategically position their businesses for mid-term and long-term growth, according to a survey by Ernst & Young LLP. "Many hotel enterprises have identified and continue to identify ways to more closely manage costs. They are intensifying their focus and practices around risks and controls, with an objective of emerging from the current downturn stronger. Those that are effective will remain competitive in the short-term, and will attract more capital and accelerate their growth in the next up-cycle," says Michael Fishbin, National Director, Ernst & Young LLP Hospitality Services Group.
The U.S. hotel industry posted declines in three key performance measurements during the week of 22-28 March 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 12.3 percent to end the week at 56.6 percent (64.6 percent in the comparable week in 2008). Average daily rate dropped 8.8 percent to finish the week at US$99.77 (US$109.34 in the comparable week in 2008). Revenue per available room for the week decreased 20.0 percent to finish at US$56.50 (US$70.61 in the comparable week in 2008).
As the saying goes, the bigger they come, the harder they fall. And the New York City hotel market, which had started to achieve new peaks of performance, has tumbled badly since October 2008. Almost to the day that Lehman Brothers collapsed, the NYC hotel market has been weakening. But the weakness in the financial markets only tells part of the story. This article will examine the recent trends in New York hotel market conditions and provide some insight into what the future might hold.
The Canadian hotel industry posted decreases in all three key performance measurements during the week of 22-28 March 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 3.8 percent to end the week at 57.5 percent. Average daily rate dropped 3.0 percent to finish the week at CAD$120.20. Revenue per available room for the week decreased 6.8 percent to finish at CAD$69.06.
The global credit crunch and the recession that followed have hit the Canadian hotel real estate sector, which experienced a 77 per cent decline in investment activity, falling to $1.1 billion over the past year, according to Colliers International Hotel’s 2009 Canadian Hotel Investment Report released today. The report also found the average price per room fell by 25 per cent to $116,500 in 2008 from $154,200 the previous year.
The Canadian hotel industry posted declines in all three key performance measurements during the week of 1-7 March 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 12.9 percent to end the week at 55.4 percent. Average daily rate dropped 3.4 percent to finish the week at CAD$125.95. Revenue per available room for the week decreased 15.8 percent to finish at CAD$69.83.