Hotel occupancy hovers around 35% after Memorial Day boost

Occupancy rates hit a low of 21% in April

TRD NATIONAL /
May.May 28, 2020 02:05 PM
Hotel occupancy continued its recovery from the coronavirus, with rates reaching an average of 35% in the U.S. after Memorial Day weekend. (Getty)

Hotel occupancy continued its recovery from the coronavirus, with rates reaching an average of 35% in the U.S. after Memorial Day weekend. (Getty)

Hotels are slowly clawing their way back from pandemic purgatory.

National occupancy rates climbed to 35.4 percent between May 17 and 23, according to weekly data released by STR. That’s up from 32.4 percent the week prior, and it marks the sixth consecutive week that rates have improved.

Occupancy hit a low of roughly 21 percent in early April, and crossed the 30 percent threshold in the first week of May.

Jan Frietag, STR’s senior vice president of lodging insights, said it was “no surprise” that the highest levels of daily occupancy were recorded on Friday and Saturday, ahead of Memorial Day. All 50 states have begun re-opening at least some businesses and rolling back stay-at-home orders and other restrictions.

While hotel fundamentals are on the up, year-over-year figures show just how badly the industry has been battered by the coronavirus pandemic. Last week’s 35.4 percent occupancy rate marked a 50.2 percent plunge from a year ago. Average daily rate was down 39.7 percent and revenue per available room fell 69.9 percent year over year.

Fundamentals in many major markets are worse than the national averages, although four of the top 25 markets in the country — New York City, Tampa/St. Petersburg, Norfolk/Virginia Beach, and Phoenix — saw occupancy levels above 40 percent.

About 45 percent of hotel rooms in New York were occupied last week. RevPAR climbed about $2 to $54.47 and daily rate about 30 cents to $121.29.

Last week’s occupancy rate in the Los Angeles/Long Beach market climbed 2 percentage week over week to 37.8 percent. ADR and RevPAR also increased last week, hitting $105.88 and $40.04, respectively.

The state of California and local governments have rented rooms for vulnerable homeless locals throughout the pandemic as a way to safely house people and support a devastated hotel industry. More than 3,200 rooms have been rented in L.A. County alone, but logistical issues and personnel shortages have hampered the program.

Miami’s 29.3 percent occupancy rate was an improvement from 26.5 percent the week prior and the closest it’s been to 30 percent since the middle of April. ADR fell week over week to $80.50 from $81.15 a week earlier, but RevPAR climbed to $23.56 from $21.49 a week earlier.

Chicago went into the pandemic with a little over half of its rooms occupied and while last week was an improvement, the market is still performing poorly. Occupancy climbed 2 percentage points to 28.2 percent. ADR has been more or less flat at less than $72 all month. RevPAR improved last week to $20.19 from $19.17 a week earlier.

Oahu Island’s 12.7 percent occupancy rate was the lowest among major markets. But Orlando and Boston also had a bad week, with 22.5 percent and 22.8 percent occupancy rates, respectively.


Related Articles

arrow_forward_ios
Photo illustration of Mayor Carlos Gimenez (Getty, iStock)

Restaurants, gyms to close again in Miami-Dade

Restaurants, gyms to close again in Miami-Dade
citizenM founder Rattan Chadha, Russell Galbut and a rendering of 1212 Lincoln

CitizenM buys hotel portion of Crescent Heights’ 1212 Lincoln project

CitizenM buys hotel portion of Crescent Heights’ 1212 Lincoln project
Scott Sandelin, Ben Potts, Michelle Bernstein, Felix Bendersky and Aaron Butler (Beaker & Gray, Twitter, F&B, Linkedin)

Restaurants, bars in a “scary situation” as restrictions ramp up

Restaurants, bars in a “scary situation” as restrictions ramp up
Map of priciest condo sales and Oceanside Fisher Island (Credit: Google Maps and Redfin)

Miami condo sales flatten at the end of June

Miami condo sales flatten at the end of June
1 Hotel South Beach (Credit: Google Maps)

Starwood Capital affiliate sues 1 Hotel & Homes South Beach condo association for trademark infringement

Starwood Capital affiliate sues 1 Hotel & Homes South Beach condo association for trademark infringement
Photo illustration of Ron DeSantis (Getty, iStock)

DeSantis announces $250M rental, mortgage assistance fund

DeSantis announces $250M rental, mortgage assistance fund
Developers are still holding off on starting new construction projects

South Florida construction starts plummet again in May

South Florida construction starts plummet again in May
Dan Kodsi and Legacy Hotel & Residences

For future pandemics, Miami Worldcenter plans $60M health center

For future pandemics, Miami Worldcenter plans $60M health center
arrow_forward_ios

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

Loading...