Half empty or half full? Hotel occupancy rate nears 50%

Rate still remains over 40% below last year’s totals for NY, LA, Chicago and Miami

TRD NATIONAL /
Aug.August 07, 2020 07:00 AM
(iStock)

(iStock)

Hotels are continuing their comeback, ever so slowly.

The occupancy rate across the U.S. hit 48.9 percent for the week ending Aug. 1, according to hotel data tracker STR. The rate has increased for 15 of the last 16 weeks; the streak was interrupted in the week ending July 4 because of a surge in coronavirus cases.

Occupancy rates do not take into account hotels that are closed.

In the Los Angeles/Long Beach market, the rate was just under 50 percent, while New York continued to struggle, with an occupancy rate of just 36 percent. Chicago recorded an occupancy rate of 38 percent and Miami just 33 percent.

All four cities remained more than 40 percent below their occupancy rates from the same time last year. And of those four, only New York’s $59.40 revenue per available room exceeded the national average of $45.97. Miami and Chicago RevPars were each around $33.

In the last month, overall hotel occupancy has increased just three percentage points.

Those numbers may not improve significantly any time soon. Last week, Dr. Deborah Birx, the White House coronavirus task force coordinator, advised that the U.S. was entering a “new phase” of the virus, one in which infections were “extraordinarily widespread” in both rural and urban communities.

Summer has led to an uptick in hotel bookings, but STR’s Jan Freitag said, “what happens after Labor Day, when people go back to school, if they go back, and leisure numbers decrease? We expect corporate group demand to stay very low.”

Hotels in metro areas remain the hardest hit. Among the top 25 markets, only Norfolk/Virginia Beach, Virginia, cracked 60 percent occupancy. And just three other markets — Detroit, San Diego and Philadelphia-New Jersey — exceeded 50 percent.

Oahu Island in Hawaii and New Orleans registered the lowest occupancy rates at 21.4 percent and 29.7 percent, respectively.

Freitag added that in the remaining days before the school year begins, he expects travelers may also drive out to wide-open spaces — in addition beaches — in states like Idaho, Montana, South Dakota and Wyoming.

Contact Orion Jones at [email protected]


Related Articles

arrow_forward_ios
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jamie Dimon and 383 Madison Avenue (Getty, Google Maps)

JPMorgan suffers setback in return to office

JPMorgan suffers setback in return to office
Lennar's Stuart Miller, Rick Beckwitt and Jon Jaffe (Lennar; iStock)

Lennar reports untempered demand for new homes in Q3

Lennar reports untempered demand for new homes in Q3
A lawsuit seeks to dismantle Gov, Andrew Cuomo’s midnight food curfew by arguing coronavirus is not a vampire (Getty; iStock)

Nail in the coffin: Eatery says Cuomo’s biz-killing curfew treats virus like vampire

Nail in the coffin: Eatery says Cuomo’s biz-killing curfew treats virus like vampire
Courtyard by Marriott in Herald Square and Marriott CEO Arne Sorenson (Google Maps, Getty)

Courtyard by Marriott in Herald Square to close permanently

Courtyard by Marriott in Herald Square to close permanently
U.S. foreclosure filings in August jumped 11% as some states ended relief measures, though continued government intervention has prevented sharper increase (iStock)

US foreclosure filings jump as some states end relief measures

US foreclosure filings jump as some states end relief measures
Singapore (iStock)

Singapore’s housing market storms back

Singapore’s housing market storms back
Century  21 will wind down operations at its 13 stores (Getty)

Century 21 Stores files for bankruptcy, blames insurers

Century 21 Stores files for bankruptcy, blames insurers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...