Hotel Occupancies Have Cratered. What Happens Next?
The recovery hotel experts had hoped to see in June now seems more likely to potentially arrive in July or August.
April 6, 2020 | Bendix Anderson | National Real Estate Investor
The good news for the hospitality sector is that occupancy rates likely won’t fall in the coming weeks. But that’s only because occupancies have already dropped so low.
Less than a quarter (22.6 percent) of the hotel rooms in the U.S. were occupied in the week ending March 28, according to STR. That’s down from 80.3 percent at this time last year.
“Occupancy rates in the U.S. will likely not get much worse, partially because they can’t,” says Jan Freitag, senior vice president for STR, based in Nashville, Tenn.