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Hotels head for rock bottom
Operators barely fill rooms, and when they can, they get almost nothing
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
| Market | Date | Occupancy | Occupancy % change | ADR | ADR % change | RevPAR | RevPAR % change |
|---|---|---|---|---|---|---|---|
| Chicago, CBD | March 29 - April 4 | 7.0% | -91.1% | $108.91 | -41.20% | $7.63 | -94.8% |
| Chicago, IL | March 29 - April 4 | 17.1% | -75.6% | $73.50 | -75.60% | $12.61 | -87.0% |
| Los Angeles/Long Beach, CA | March 29 - April 4 | 21.5% | -73.3% | $114.57 | -34.60% | $24.62 | -82.5% |
| New York, NY | March 29- April 4 | 18.3% | -79.1% | $135.70 | -45.30% | $24.79 | -88.6% |
| Florida | March 29 - April 4 | 18.3% | -77.4% | $91.83 | -44.8 | $16.81 | -87.5% |
| Chicago, CBD | March 22-28 | 5.9% | -90.9% | $107.51 | -27.60% | $6.31 | -93.4% |
| Chicago, IL | March 22-28 | 16.1% | -74.8% | $73.62 | -37.60% | $11.88 | -84.3% |
| Los Angeles/Long Beach, CA | March 22-28 | 21.0% | -74.1% | $118.18 | -32.00% | $24.85 | -82.4% |
| New York, NY | March 22-28 | 15.2% | -81.8% | $146.37 | -33.10% | $22.32 | -87.8% |
| Florida | March 22-28 | 20.4% | -75.6% | $97.21 | -47.4 | $19.87 | -87.2% |
| Chicago, IL | March 15-21 | 20.4% | -69.6% | $82.51 | -31.90% | $16.80 | -79.3% |
| Chicago, CBD | March 15-21 | 9.3% | -86.7% | $125.39 | -17.50% | $11.72 | -89.1% |
| New York, NY | March 15-21 | 16.8% | -80.5% | $160.21 | -30.80% | $26.96 | -86.5% |
| Los Angeles/Long Beach, CA | March 15-21 | 29.0% | -64.9% | $126.10 | -29.00% | $36.56 | -75.1% |
| Florida | March 15-21 | 35.0% | -59.2% | $139.21 | -24.3 | $48.74 | -69.1% |
| Chicago, IL | March 8-14 | 43.8% | -35.0% | $109.41 | -12.40% | $47.90 | -43.1% |
| Chicago, CBD | March 8-14 | 35.6% | -48.6% | $147.24 | -10.10% | $52.43 | -53.8% |
| New York, NY | March 8-14 | 48.8% | -44.0% | $180.93 | -19.10% | $88.25 | -54.7% |
| Los Angeles/Long Beach, CA | March 8-14 | 58.3% | -31.6% | $159.07 | -12.20% | $92.71 | -39.9% |
| Florida | March 8-14 | 67.3% | -24.1% | $170.87 | -7.9 | $114.95 | -30.1% |
| Chicago, IL | March 1-7 | 56.1% | -13.5% | $114.60 | -5.70% | $64.27 | -18.5% |
| Chicago, CBD | March 1-7 | 52.9% | -23.0% | $144.67 | -6.80% | $76.50 | -28.3% |
| New York, NY | March 1-7 | 72.1% | -13.1% | $188.59 | -8.30% | $136.05 | -20.3% |
| Los Angeles/Long Beach, CA | March 1-7 | 74.8% | -8.2% | $174.46 | -0.60% | $130.41 | -8.8% |
| Florida | March 1-7 | 77.1% | -8.5% | $174.86 | -1.6 | $134.85 | -9.9% |
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.