Peak Fall Journey Season Possible Over for US Accommodations

Peak Fall Journey Season Possible Over for US Accommodations

Key metrics for U.S. lodge efficiency had been down barely within the newest weekly information from STR, and historical past means that the height of the autumn journey season has come and gone.

For the week ending Oct. 22, U.S. lodge occupancy was down 0.4 share factors from the earlier week to 69.9%. Occupancy for the previous two weeks, nevertheless, has averaged 70.1%, surpassing 70% for under the seventh time up to now 23 years over this two-week interval.

Common day by day price was additionally down 0.1% week over week to $157 however was 17% larger than the identical week of 2019. When adjusted for inflation, ADR nonetheless surpassed 2019 by 1.1%. Income per out there room decreased 0.7% week over week to $110 and was simply barely higher than in 2019 when adjusted for inflation.

Room demand — the variety of lodge room nights offered — within the present week and subsequent is anticipated to fall extra considerably as households keep residence for Halloween, which is on a Monday this 12 months. In previous years with the identical day-of-week composition, room demand fell by about 5% within the week of Halloween.

The slowdown in lodge efficiency is regular for this time of 12 months. For the week ending Oct. 22, demand was down 142,000 room nights from the earlier week. Over the identical interval of 2019, demand was down 755,000 room nights. Out there rooms are up 887,000 from 2019, and the U.S. lodge business offered 370,000 extra rooms over this two-week interval than it did in 2019, when occupancy was 1.1 share factors larger.

Weekend occupancy slid for a second week, down 1.2 share factors week over week to 77.8%. In comparison with 2019, occupancy over the weekend was practically three share factors larger.

Demand for lodge rooms from teams was the second strongest for the reason that begin of the pandemic, serving to to drive a week-over-week enchancment in weekday lodge occupancy.

Monday to Wednesday occupancy throughout the U.S. elevated within the week to 69.4%, up from 67.9% within the prior week. This was the very best weekday occupancy since late July.

The highest 25 markets did even higher with occupancy growing to 75.1%. New York led the nation in weekday occupancy at 90.7% adopted by Boston at 86.8%. Many of the high 25 markets had weekday occupancy above 70%, with the bottom in Minneapolis at 60.7%.

Weekday occupancy within the high 25 markets was up 1.2 share factors week over week, and out of doors of the highest 25 markets was up 1.5 share factors to 66.6%.

Central enterprise districts additionally did very effectively with weekday occupancy rising to 77.3%. Central enterprise district weekday occupancy has been above 75% in 5 of the previous six weeks. Occupancy surpassed 90% in three of the 20 central enterprise districts tracked weekly, led by Nashville and adopted by Boston and the New York Monetary District.

Weekday occupancy for big city, luxurious and upper-upscale motels within the high 25 markets reached 80.6%, third highest for the reason that begin of the pandemic however practically 9 share factors decrease than in the identical week of 2019. That is solely the third time for the reason that begin of the pandemic that occupancy for these kind of motels has surpassed 80%, with the very best weekday occupancy of the pandemic period 5 weeks in the past at 82%.

Occupancy within the high 25 markets surpassed 75% for a second consecutive week. Per week prior, the group reported its highest occupancy for the reason that begin of the pandemic at 75.3%.

ADR within the high 25 remained above $190 for a second week with the weekday stage above $193. Adjusted for inflation, high 25 ADR is nearing 2019 ranges — simply 3% decrease.

Regardless of the strong efficiency, high 25 market occupancy over the previous two weeks was down 4.1 share factors versus 2019, and room demand additionally trailed 2019 in addition to 2018 ranges.

The weak spot got here from 4 of the biggest markets within the nation: Chicago, New York, San Francisco and Washington, D.C., the place demand averaged 12% decrease than in the identical two weeks of 2019.

San Francisco had the biggest demand deficit, down 19% versus 2019. Nevertheless, 9 of the highest 25 markets had larger demand over this two-week interval than in 2019 — together with Atlanta, Boston, Miami, Nashville, Orlando and Phoenix. In whole, high 25 demand was down 3% over the previous two weeks versus 2019. And, whereas New York was nonetheless at a deficit, it had the nation’s highest occupancy this week at 88.6%.

Occupancy exterior of the highest 25 markets was 67.5% for the week ending Oct. 22 and was practically flat over the previous two weeks.

Weekend occupancy within the high 25 markets has additionally been stronger, surpassing 80% up to now three weeks. In Boston and New York, occupancy exceeded 90% this previous weekend. The best weekend occupancy was in Gatlinburg/Pigeon Forge, Tennessee, at 96%, adopted by Madison, Wisconsin, at 93%. Austin reported its highest weekend occupancy of the 12 months at 93.2% because of the System 1 race held there.

The best occupancy exterior of the highest 25 markets was posted in areas affected by Hurricane Ian. Occupancy surpassed 86% in two Florida markets, Sarasota and Fort Myers. In Fort Myers, occupancy was up 3.9 share factors from the earlier week.

Pandemic-era occupancy data had been additionally achieved at luxurious and upper-upscale motels, at 75.2% and 75.4%, respectively. In comparison with the identical week in 2019, occupancy for the 2 chain scales was greater than 5 share factors decrease, however that hole to 2019 is trending down.

Upscale and upper-midscale motels additionally reported occupancy above 70% for the week. The bottom weekly occupancy was within the economic system chain scale at 61%.

Over the previous 28 days, 89% of all U.S. lodge markets surpassed 2019 ranges in nominal RevPAR. Adjusted for inflation, 53% of markets beat 2019 ranges, led this week by Sarasota. Total, high 25 actual RevPAR was 8% decrease than in 2019, with San Francisco on the backside.

Solely seven markets had been nonetheless categorized as being in “recession,” with inflation-adjusted RevPAR between 50% and 80% of 2019 ranges.

Isaac Collazo is VP Analytics at STR.

This text represents an interpretation of knowledge collected by CoStar’s hospitality analytics agency, STR. Please be at liberty to contact an editor with any questions or issues. For extra evaluation of STR information, go to the information insights weblog on

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