By +Eric Jafari
Hotel occupancy in the US was down over the festive
period, according to data from STR. The industry reported
a 7.2 per cent fall, based on year-over-year comparisons. This
means that between December 23rd and 29th, occupancy stood at 45.4
However, it seems that other key performance metrics were also
hit during Christmas, with average daily rates and revenue per
available room both falling. STR claims that across the country,
daily rates plummeted by an average of 1.6 per cent to $106.57
(£66.42), while revenue per room dropped to $48.34 (£30.13) - a
fall of 8.7 per cent.
Brad Garner, STR's chief operating officer, explained: "A shift
in the day Christmas and New Year's Eve fell on this year eroded
last week's performance. We expect the industry to return to
performance normalcy in the coming weeks. And while the year
certainly will finish strong, we also look forward to tracking what
the new normal might be with travel patterns post fiscal
Nevertheless, the Christmas period didn't bring doom and gloom
for all hoteliers and among the top 25 markets, an increase in
occupancy and revenue per room was noted in Seattle, WA. Occupancy
stood at 45.1 per cent, which is a 5.9 per cent rise, while revenue
per room increased 5.3 per cent to $42.83 (£26.70). Average
daily rate rises were also noted in Miami-Hialeah in Florida and
Anaheim-Santa Ana, California, increasing 2.8 per cent and 2.7 per
cent respectively to $244.30 (£152.27) and $123.73 (£77.12).
Unfortunately, rises were not enjoyed in New Orleans and
Nashville, which witnessed occupancy falls of 21.9 per cent and
20.3 per cent respectively. Nashville also recorded significant
average daily rate losses, falling 11 per cent to $88.60 (£55.22)
and revenue per room decreases of 29 per cent to $39.16 (£24.41).
New Orleans posted revenue per room losses of 25.5 per cent, taking
the total to $56.09 (£34.96).
It is hoped the fortunes of the US hotel sector will change in
2013, as the commercial property market continues its recovery and
activity increases. Judging by the performance of other segments,
this optimism may not be misguided.
23 January 2013
Hotel Investments,Hotel Performance,US Hotel Markets