US Hotel Performance Off 80% YOY in Wake of Coronavirus – STR
April 15, 2020 | Sylvia Cycil | S&P Global Market Intelligence
The coronavirus pandemic continued to weigh on U.S. hotel performance for the week ended April 11, according to weekly data released by STR, which tracks the hospitality industry.
Year over year, revenue per available room slid 83.6% to $15.61, and average daily rate declined 45.6% to finish the week at $74.18. Occupancy fell 69.8%, to 21.0%.
“Several weeks of data also point to occupancy in the 20% range to be the low point, and economy hotels holding at a higher occupancy level is the pattern right now,” Jan Freitag, STR’s senior vice president of lodging insights, said in a release.
Among the top 25 markets, Oahu Island, Hawaii, saw the largest decline in occupancy, falling 90.9%, to 7.1%, leading to the steepest RevPAR drop, with the metric down 94.0% to $10.26. San Francisco/San Mateo, Calif., reported the largest decline in ADR, falling 62.5% to $107.42.
Occupancy in New York tumbled 71.7% to 24.8%, while occupancy in Seattle dropped 70.9% to 20.2%.
Hotel operator Marriott International Inc. said April 14 that the pandemic will continue to hurt its business, operations and financial results, and affects its ability to raise equity. The company said in a filing it may be forced to recognize substantial noncash impairment charges to its results of operations, as most of its owned and leased properties are not generating revenue sufficient to meet operating expenses.
Source: S&P Global Market Intelligence
