Breaking Stories

Hotels: Occupancy Rate Down 9% Compared to Same Week in 2019

by Calculated Risk on 10/28/2021 12:58:00 PM

Note: Since occupancy declined sharply at the onset of the pandemic, CoStar is comparing to 2019.

U.S. hotel occupancy dipped a percentage point week over week, while room rates rose slightly, according to STR’s latest data through October 23.

October 17-23, 2021 (percentage change from comparable week in 2019*):

o Occupancy: 63.9% (-9.1%)
o Average daily rate (ADR): $134.14 (-0.6%)
o Revenue per available room (RevPAR): $85.74 (-9.6%)

*Due to the steep, pandemic-driven performance declines of 2020, STR is measuring recovery against comparable time periods from 2019.

emphasis added

The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Hotel Occupancy RateClick on graph for larger image.

The red line is for 2021, black is 2020, blue is the median, dashed purple is 2019, and dashed light blue is for 2009 (the worst year on record for hotels prior to 2020).

Note: Y-axis doesn’t start at zero to better show the seasonal change.
The Summer months had decent occupancy with solid leisure travel, and occupancy was only off about 7% in July and August compared to 2019.
Usually weekly occupancy increases to around 70% in the weeks following Labor Day due to renewed business travel. However, this year, so far, business travel has been lighter than leisure travel in 2021.

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