Luxury, economy occupancy growth tops other segments in Sept.

Grand Hyatt San Antonio marks 10th anniversary with completion of $19M renovation.
Luxury hotels, such as the Grand Hyatt San Antonio, reported year-over-year occupancy growth of more than 5 percent this September. Photo credit: Grand Hyatt San Antonio

Luxury and economy hotels reported year-over-year occupancy growth of more than 5 percent this past September, according to Kalibri Labs’ U.S. Hotel Industry Performance Overview. Other segments reported flat or declining occupancy, resulting in total U.S. occupancy rising 1 percent YOY.

Higher occupancy, however, did not necessarily translate to an increase in revenues. Despite having the highest occupancy of the top 10 markets, New York City (92 percent) and San Francisco (87 percent) both reported declining  average daily rate (ADR based on the total room revenue paid by the guest, inclusive of all transaction-specific direct reservation costs). Kalibri Labs also found the two markets experienced the longest booking lead times, roughly five weeks, which it noted historically has been an indicator of pricing power.

According to the group’s research, year-to-date, hotels with more than 140 rooms had average occupancies of more than 70 percent, while hotels with fewer than 60 rooms had an average occupancy of 55 percent.

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


When evaluating channel/source-of-business performance on a year-to-date basis, the analytics company found the voice channel made up slightly more than 7 percent of all room-night bookings. This small percentage is a continuation of a decline that has been going on for the past several years, according to Kalibri Labs.

Suggested Articles

While profits remained positive for the second consecutive month, the rate of growth slowed from July.

Sahin, director of supply management, EMEA at Hilton, talked about new trends he is seeing in the industry. 

While it may require some work to properly transition a property to appeal to the daily business “traveler,” the advantages are clear.