The Real Deal Miami

Second quarter 2009 hospitality report shows distress

July 09, 2009 09:43AM

As mounting job losses continue to discourage leisure and business travel, conditions in the national hospitality sector are expected to remain weak for the rest of the year, according to a second-quarter 2009 hospitality report from commercial brokerage Marcus & Millichap. Occupancy rates have dropped to 53 percent, down 670 basis points from this quarter last year, and the average daily room rate has slid to under $100, which is 8.5 percent lower than one year ago. Revenue per available room, or revpar, has also declined, dropping 18.7 percent from last year to $52.78. Despite the signs of distress, approximately 100,000 new rooms have been put into service this year and many hotel analysts believe the industry is passing through the worst of the downturn and may start to stabilize soon. TRD