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

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
Leonard Stern with Wyndham Garden Hotel Newark Airport (Getty, Hotels Combined)
Hartz buys Newark Airport hotel for $34M, plans demolition
Hartz buys Newark Airport hotel for $34M, plans demolition
RXR CEO Scott Rechler and 620 Sixth Avenue (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images, Beyond My Ken, CC BY-SA 4.0 - via Wikimedia Commons)
RXR sues insurers over infectious disease coverage
RXR sues insurers over infectious disease coverage
Moderna's Tracey Franklin and St. Regis Residences Boston (Getty, Moderna)
Boston’s luxury boom comes courtesy of Moderna
Boston’s luxury boom comes courtesy of Moderna
Public Hotel at 215 Chrystie Street, Steve Witkoff and Ian Schrager (Getty, Google Maps, Witkoff)
Schrager, Witkoff default on Public Hotel mortgage
Schrager, Witkoff default on Public Hotel mortgage
38-59 11th Street in Long Island City (Gene Kaufman Architect, iStock)
Daryl Hagler books $63M Long Island City hotel sale
Daryl Hagler books $63M Long Island City hotel sale
From left: 121 West 26th Street, Watermark’s Brendan Medzigian and Two Kings Principal Christopher Wang (Google Maps, Watermark , LinkedIn)
Watermark Capital sells Holiday Inn in Chelsea for $80 million
Watermark Capital sells Holiday Inn in Chelsea for $80 million
The Indie Cultivate event and Independent Lodging Congress president Andrew Benioff (Independent Lodging Congress)
Is innovation dead? These real estate disruptors say no
Is innovation dead? These real estate disruptors say no
From left: Brookfield’s Brian Kingston and Hospitality Investors Trust's Jonathan P. Mehlman with Hilton Garden Inn Monterey (Brookfield, Hospitality Investors, Hilton)
Brookfield hotel REIT sues insurers for denying pandemic claims
Brookfield hotel REIT sues insurers for denying pandemic claims
arrow_forward_ios

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

Loading...