Miami hotels see 60% drop in room rates

Occupancy declines further in another pummelling week

National /
Apr.April 01, 2020 03:30 PM
Hotels across the country — including the Plaza Hotel in New York and Chateau Marmont in LA — have shuttered and laid off and furloughed staffers. (Credit: Keith Birmingham/MediaNews Group/Pasadena Star-News via Getty Images; iStock)

Hotels across the country — including the Plaza Hotel in New York and Chateau Marmont in LA — have shuttered and laid off and furloughed staffers. (Credit: Keith Birmingham/MediaNews Group/Pasadena Star-News via Getty Images; iStock)

The picture for the country’s hotels continued to grow ever worse last week, as more than three quarters of the nation’s hotel rooms sat vacant.

Nationwide, occupancy fell almost 68 percent to an occupancy rate of 22.6 percent during the week of March 22 to March 28, according to the hospitality data firm STR. The rate of decline accelerated from a drop in occupancy of roughly 56 percent the week before.

STR senior vice president Jan Freitag said that declines like these are the “new normal” until the number of new Covid-19 cases show a significant slowdown.

“2020 will be the worst year on record for occupancy,” he said, noting that more than 75 percent of rooms around the country sat empty last week. “We do, however, expect the industry to begin to recover once the economy reignites and travel resumes.”

Across the country, average daily room rates fell shy of 40 percent to about $80, and revenue per available room plunged 80 percent to just a few cents more than $18.

New York City saw occupancy nosedive more than 80 percent to just above 15 percent. Miami recorded the largest drop in daily room rates, tanking nearly 60 percent to short of $117. Occupancy at Miami hotels fell 77 percent, to 20 percent.

Chicago and Los Angeles both registered a drop in occupancy of nearly 75 percent to about 16 percent and 21 percent, respectively.

Hotels across the country — including marquee names like the Plaza and Four Seasons downtown — have shuttered and laid off and furloughed staffers.

Meanwhile, New York City is looking to rent hotel rooms that can be converted into hospital rooms for non-Covid 19 patients. The city is trying to free up room in medical facilities for those afflicted with coronavirus. Other hotels have been opening their doors to first responders in the city.

Contact Rich Bockmann at [email protected] or 908-415-5229.


Related Articles

arrow_forward_ios
Joseph Chetrit and a rendering of the Collins Park project (Getty, Kobi Karp)
Chetrit scores $63M construction loan for long-planned Collins Park hotel in Miami Beach
Chetrit scores $63M construction loan for long-planned Collins Park hotel in Miami Beach
Fontainebleau Miami Beach, Jeffrey Soffer and former President Donald Trump (Ebyabe/Wikipedia, Getty, iStock)
Gambling portability a no-go in Florida this year for Jeffrey Soffer, Trump
Gambling portability a no-go in Florida this year for Jeffrey Soffer, Trump
Setai Miami Beach and owners Joe, Ralph and Avi Nakash. (Setai)
Setai Miami Beach bans unwelcome hotel guest from using amenities: lawsuit
Setai Miami Beach bans unwelcome hotel guest from using amenities: lawsuit
Russell Galbut and a rendering of the project (Studio MCG Architecture)
Russell Galbut wants to turn South Beach hotel and adjacent building into offices and restaurants
Russell Galbut wants to turn South Beach hotel and adjacent building into offices and restaurants
Ronny Finvarb with a rendering of 1790 Alton Road (GEK Architecture)
Miami Beach to prohibit hotels in Sunset Harbour? Zoning overhaul could derail Ronny Finvarb’s project
Miami Beach to prohibit hotels in Sunset Harbour? Zoning overhaul could derail Ronny Finvarb’s project
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, iStock, Banyan Cay)
Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud
Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud
Rendering of the proposed Bulgari Hotel (Bulgari)
Miami Beach board backs Bulgari hotel plans to redevelop Seagull with height increase and ground-floor expansion
Miami Beach board backs Bulgari hotel plans to redevelop Seagull with height increase and ground-floor expansion
Dacra’s CEO and president Craig Robins. (Getty)
Commissioners give green light to 36-story tower in the Miami Design District
Commissioners give green light to 36-story tower in the Miami Design District
arrow_forward_ios

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

Loading...