ADR, RevPAR reach March 2020 levels

Demand for the top 25 markets hit a pandemic high during the week of March 28 through April 3, led by gains in Washington, D.C. Photo credit: Pixabay/12019 (skyline)

According to STR's data through April 3, U.S. hotel occupancy remained flat from the previous week, while average daily rate and revenue per available room levels were the highest since the beginning of March 2020. 

For the week of March 28 through April 3, occupancy was 57.9 percent, average daily rate was $112.76 and revenue per available room was $65.33.

The occupancy level was 1 point below the pandemic peak reached two weeks before. The RevPAR value represented 73.1 percent of the comparable 2019 level, which is the closest the U.S. has come to RevPAR recovery territory in STR’s Market Recovery Monitor.

According to the report, the country’s RevPAR was a 4.2 percent increase week over week and the industry’s highest level of the past 56 weeks when indexed to 2019. RevPAR has increased week over week all but three times this year. STR’s Market Recovery Monitor reflected the country’s stronger overall RevPAR performance with 73 markets either in "recovery" or "peak" categories. 

More encouraging, only 20 markets were in the "depression" category, the least of the past 53 weeks. Top 25 markets also are improving, and as a group, entered the "recession" phase for the first time. However, most of the markets that are classified as in depression continued to be those in the top 25, including San Francisco, Boston, New York City, New Orleans and Washington, D.C. Of all U.S. markets, those five markets had the lowest RevPAR when indexed to their 2019 benchmark. Similar trends were noted when using STR’s total-room-inventory methodology. RevPAR on this basis was $61.76, up 3.7 percent with 67 markets in the Recovery or Peak categories.

Demand increased from the previous week and remained above 21 million for a third consecutive week—the weekly value was the 10th highest of the past five quarters. The largest weekly demand gain occurred in California while the largest decrease was in Texas, which was the Lone Star State’s second consecutive weekly decline. Florida also saw solid growth after posting a drop in the previous week.

Top Markets

Demand for the top 25 markets hit a pandemic high, led by gains in Orlando, San Diego, Washington, D.C., and others. Among all markets, these three markets were also the largest gainers for the week.

Among the top 25 markets, Tampa (84 percent) and Miami (75.9 percent) experienced the highest occupancy levels. The lowest top 25 occupancy levels came in Minneapolis (39.2 percent) and Boston (42 percent).

Aggregate data for the top 25 markets showed slightly lower occupancy (57.3 percent) but higher ADR ($121.03) than all other markets. Top 25 markets showed the largest week-over-week increase in ADR and reached their highest level in the metric since the middle of March 2020.