U.S. Market Recovery Monitor – 22 May 2021

U.S. Market Recovery Monitor – 22 May 2021



The leisure-led demand surge marched forward with U.S. industry occupancy hitting 60.3%, surpassing the 60% level for the first time since early March 2020.

Infographic - Source - STR - U.S. Hotel Occupancy

U.S. Market Recovery Monitor – 22 May 2021

Excerpt from STR

The leisure-led demand surge marched forward with U.S. industry occupancy hitting 60.3%, surpassing the 60% level for the first time since early March 2020.

On a total-room-inventory basis (TRI), which accounts for temporarily closed hotels, occupancy was 57.7%, which was also the highest since the pandemic’s start. More importantly, all key measures (demand, occupancy, ADR and RevPAR) reached a 62-week high, led by the Top 25 Markets, where on average, each hotel sold an additional 15 rooms last week versus the previous week. In total, the industry sold more than 3.3 million rooms each day during the week, a level like November 2019, but 300,000 less than what was sold daily in May 2019.

New York City saw the largest demand gain of the week followed by San Diego and Los Angeles. In total, more than 70% of all markets reported demand improvement for the week. Even with the gain, New York still had a significant gap to its previous performance with total demand less than 50% of what it was in 2019. In addition, New York leads in the number of hotels that remain closed. Nearly one quarter of all closed rooms in the U.S. are in New York City, where TRI occupancy for the week was 41%, the second lowest of all markets behind San Francisco (39%) and below Washington, D.C. (44%) and Boston (45%).

While key cities remained mired in a depressive state, overall performance in the Top 25 was at a 62-week high in demand, occupancy, ADR and RevPAR. Miami and Tampa led the Top 25 with TRI occupancy at 70%+. Nearly half of the Top 25 also reported demand at 80% or higher compared with the same week in 2019. While all key performance measures increased, it is worth noting Top 25 ADR is still down 23% as compared to 2019 with RevPAR off by 43%. Taking a closer look, large hotels (300+ rooms) continued to be a major drag to the industry but particularly to the Top 25. Excluding those large properties (1,600+ hotels), industry weekly occupancy was 62%. Occupancy in the Top 25 sans large hotels was 63%.

Click here to read complete article at STR.

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