STR: RevPAR drops to $16.50 to start April

Reflecting the continued impact of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of March 29 through April 4, according to data from STR. 

In comparison with the week of March 31 through April 6, 2019, the industry recorded the following:

  • Occupancy: -68.5 percent to 21.6 percent
  • Average daily rate: -41.5 percent to $76.51
  • Revenue per available room: -81.6 percent to $16.50
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“Data worsened a bit from last week, and certain patterns were extended around occupancy,” said Jan Freitag, STR’s senior VP of lodging insights. “Economy hotels continued to run the highest occupancy, while interstate and suburban properties once again posted the top occupancy rates among location types. This shows there are still pockets of demand while more than 75 percent of the rooms around the country are empty. We don’t expect any material change in the magnitude of RevPAR declines for the time being.”

Aggregate data for the top 25 markets showed steeper declines across the metrics: occupancy (-74.7 percent to 19.4 percent), ADR (-47 percent to US$85.61) and RevPAR (-86.6 percent to US$16.57).  

Among those top 25 markets, Oahu Island, Hawaii, experienced the largest decrease in occupancy (-90.7 percent) and the only single-digit absolute occupancy level (7 percent). The decline in occupancy resulted in the steepest drop in RevPAR (-93.7 percent to $10.83). 

Minneapolis/St. Paul, Minnesota-Wisconsin, posted the largest decline in ADR (-57 percent to US$68.23). 

Of note, occupancy in New York was down 79.1 percent to 18.3 percent. In Seattle, occupancy dropped 73.3 percent to 19.5 percent.