Signs late last week pointed to a negative performance impact from the hacking of the Colonial Pipeline and resulting gas shortages. Crisis averted, however, as U.S. hotel demand, occupancy, ADR and RevPAR all reached or were near pandemic-era highs.
Excerpt from STR
Week ending 15 May
Signs late last week pointed to a negative performance impact from the hacking of the Colonial Pipeline and resulting gas shortages. Crisis averted, however, as U.S. hotel demand, occupancy, ADR and RevPAR all reached or were near pandemic-era highs. Further, all four measures hit pandemic highs when looking strictly at the weekend. Occupancy for the week averaged 59.1% or 56.4% on a total-room-inventory (TRI) basis, which accounts for temporarily closed hotels. That occupancy was the second- highest level of the past 62 weeks. Weekend occupancy was 73.6% (70.2 TRI), the highest level since Valentine’s Day weekend in 2020.
After a fortnight of being flat or slightly falling, demand powered to its largest amount in more than a year, topping 22.4 million. Weekly room demand has been at 80% or more of 2019’s level for the past nine weeks. The largest weekly gains were seen in markets that tend to rely more on business travel, including Houston, Chicago, Los Angeles, New York, and Dallas. While these markets saw the largest week-on-week gains, New York and Chicago remain far from normal with this week’s demand at less than 50% of what was seen in 2019. Dallas, Houston, and Los Angeles are in a better position with 80% or more of the 2019 demand level realized last week. Overall, demand for the week increased by nearly one million room nights with 80% of all markets posting week-on-week growth. Thirteen states had demand at 95% or more of the level seen in 2019 with Texas and Florida, two of the three largest demand states, nearly at 2019 levels.
The surge in industry performance was widespread with the number of hotels with occupancy above 60% advancing to a new high. Despite the solid gains, there are still many hotels and markets suffering, especially large, convention hotels and markets dependent on group business. Overall, weekday occupancy for large urban hotels (300+ rooms) remained low (31.5%) and even lower in the Top 25 markets (30.9%). Seven markets reported weekly TRI occupancy under 45%, including San Francisco, New York, Washington, D.C. and Boston. Weekday occupancy for hotels that cater to business in top 25 urban locations continued to be weak at 45%, but up from the previous week.
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May 23, 2021 at 08:40AM