Hotel occupancy and pricing are both still falling in spite of the billions of stimulus dollars that have been promised to the economy. August occupancy rates are at 60.7 percent and the revenue per available room are dropping more than the annual average. The scene is not good.
The hotel industry is simply getting more of the same old thing, slowing demand and lower income. So far this year, according to Smith Travel Research, the average daily room rate has dropped 9 percent and the revenue per available room has dropped more than 18 percent. And the revenues keep dropping.
All charts courtesy Smith Travel Research.
STR went into additional details in their release. Then indicated the large hotel markets that have the smallest drop in these key metrics are Washington, Boston, San Francisco, and Oahu.
Denver and New York saw the greatest deterioration of their average daily rate.
Bottom line: Hotel prices are stabilizing in DC, Boston, San Francisco and Hawaii, but still falling rapidly in Denver and New York. It might be a good time to plan a trip to the Rockies or the Big Apple.
(Photo: Four Seasons, Washington)
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
