Hotels head for rock bottom

Operators barely fill rooms, and when they can, they get almost nothing

TRD New York TRD INSIGHTS /
Apr.April 13, 2020 08:00 AM
STR data shows that hotel occupancy rates, ADR and RevPar are all trending downward (Credit: mr.bologna via Flickr)

Hotel occupancy rates, ADR and RevPar continue to plunge. (Credit: mr.bologna via Flickr)

Hotel occupancy rates have plummeted over the past two months, leading major hospitality companies to lay off or furlough huge numbers of employees and seek a bailout from the federal government.

In the last week of March, national hotel occupancy rates dropped by 21.6 percent from the same period last year, according to data from STR. The average daily rate (ADR), or the average revenue an occupied room brings in per day, decreased to $76.50 from $130.77 last year, a 41.5 percent decline. The revenue per available room (RevPAR), a measure used to evaluate a hotel’s ability to fill its open rooms, declined 81.6 percent from last year to $16.50.

STR Hotel Data: March 4 – April 8, 2020

MarketDateOccupancyOccupancy % changeADRADR % changeRevPARRevPAR % change
Chicago, CBDMarch 29 - April 47.0%-91.1%$108.91-41.20%$7.63-94.8%
Chicago, ILMarch 29 - April 417.1%-75.6%$73.50-75.60%$12.61-87.0%
Los Angeles/Long Beach, CAMarch 29 - April 421.5%-73.3%$114.57-34.60%$24.62-82.5%
New York, NYMarch 29- April 418.3%-79.1%$135.70-45.30%$24.79-88.6%
FloridaMarch 29 - April 418.3%-77.4%$91.83-44.8$16.81-87.5%
Chicago, CBDMarch 22-285.9%-90.9%$107.51-27.60%$6.31-93.4%
Chicago, ILMarch 22-2816.1%-74.8%$73.62-37.60%$11.88-84.3%
Los Angeles/Long Beach, CAMarch 22-2821.0%-74.1%$118.18-32.00%$24.85-82.4%
New York, NYMarch 22-2815.2%-81.8%$146.37-33.10%$22.32-87.8%
FloridaMarch 22-28 20.4%-75.6%$97.21-47.4$19.87-87.2%
Chicago, ILMarch 15-2120.4%-69.6%$82.51-31.90%$16.80-79.3%
Chicago, CBDMarch 15-219.3%-86.7%$125.39-17.50%$11.72-89.1%
New York, NYMarch 15-2116.8%-80.5%$160.21-30.80%$26.96-86.5%
Los Angeles/Long Beach, CAMarch 15-2129.0%-64.9%$126.10-29.00%$36.56-75.1%
FloridaMarch 15-21 35.0%-59.2%$139.21-24.3$48.74-69.1%
Chicago, ILMarch 8-1443.8%-35.0%$109.41-12.40%$47.90-43.1%
Chicago, CBDMarch 8-1435.6%-48.6%$147.24-10.10%$52.43-53.8%
New York, NYMarch 8-1448.8%-44.0%$180.93-19.10%$88.25-54.7%
Los Angeles/Long Beach, CAMarch 8-1458.3%-31.6%$159.07-12.20%$92.71-39.9%
FloridaMarch 8-14 67.3%-24.1%$170.87-7.9$114.95-30.1%
Chicago, ILMarch 1-756.1%-13.5%$114.60-5.70%$64.27-18.5%
Chicago, CBDMarch 1-752.9%-23.0%$144.67-6.80%$76.50-28.3%
New York, NYMarch 1-772.1%-13.1%$188.59-8.30%$136.05-20.3%
Los Angeles/Long Beach, CAMarch 1-774.8%-8.2%$174.46-0.60%$130.41-8.8%
FloridaMarch 1-7 77.1%-8.5%$174.86-1.6$134.85-9.9%

Source: STR

Hotels in some markets have fared worse than others, with urban hotels experiencing sharper drops in occupancy. STR’s data shows that the top 25 markets showed sharper declines in occupancy rate (down 74.7 percent, to 19.4 percent), ADR (down 47.0 percent, to $85.61) and RevPAR (down 86.6 percent, to $16.57).

In markets covered by The Real Deal, including New York City, Los Angeles, Miami and Chicago, occupancy rates declined by at least 70 percent year over year. New York’s occupancy rate dropped the most: 79.1 percent. Still, that was an improvement over the previous week’s year-over-year drop of 81.8 percent, a sign that the occupancy rate has bottomed out.


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