Topic: Revenue Per Available Room
While U.S. revenue per available room dropped further last week, mainland China has shown early signs of performance recovery.
STR and Tourism Economics project revenue per available room will rise 63.1 percent in 2021.
Jan Freitag, SVP of lodging insights at STR, warned the U.S. could face an elongated recovery due to a lack of social distancing.
The organization said it expects a recovery to be underway by Q4.
The impact from COVID-19 fears led to double-digit occupancy and revenue per available room decreases in each of STR's top 25 markets.
Jan Freitag, STR’s senior VP of lodging insights: “This is quite likely the beginning of a bad run that will get worse before it gets better."
Extended-stay hotels in almost two-thirds of U.S. markets reported higher revenue per available room in 2019 than 2018.
RevPAR fell 4.4 percent for the market’s hotels during Q4 as Manhattan hoteliers lost pricing power due to new supply and price-sensitive travelers.
Though Marriott said the virus could lower fee revenue by $25 million a month, President/CEO Arne Sorensen called the estimate “probably a bit light.”
In its full-year 2019 report, the company stated its net system size grew 5.6 percent to approximately 884,000 rooms.