According to data from STR, the U.S. hotel
industry’s occupancy rates, in year-over-year measurements, fell
9.9% to end August 2009 at 60.7%. ADR dropped 10.1% to finish the
month at US$96.58 while RevPAR decreased 19% to
finish at US$58.65.
“The results for August, while not a surprise,
were unfortunately a continuation of what the industry has been
reporting over the past several months,” said Mark Lomanno,
president of STR. “Demand, while showing signs of stabilization,
is still well below year earlier numbers. We are not likely to see
improvement in this key indicator for another month or two, where
favorable comps to last year will begin to be realized. In
addition, the continued erosion in room rates will increasingly
put a strain on profitability. The last quarter of 2009 will be
closely scrutinized as we look for any swings that might reflect a
Among the top 25 markets, Washington, D.C.,
reported the smallest decreases in all three key metrics:
occupancy fell 0.6% to 65.5%, ADR dropped 4.7% to US$121.48, and
RevPAR fell 5.2% to US$79.55.
Four markets besides
Washington, D.C., posted occupancy decreases of less than 5%:
Boston, Massachusetts (-4.2% to 74.1%); San Francisco/San Mateo,
California (-3.3% to 84.7%); Oahu Island, Hawaii (-2.6% to 78.3%);
and Tampa-St. Petersburg, Florida (-1.1% to 48.2%). Detroit,
Michigan, experienced the largest decrease in occupancy, falling
17.9% to 53.8%, followed by Houston, Texas, with a 16.6 percent
decrease to 51.7%.
Denver, Colorado, reported the largest
ADR decrease, falling 30.2% to US$89.61. New York also
experienced a large drop in ADR, which fell 27.1% to US$185.56,
followed by San Francisco/San Mateo (-17.4% to US$127.87); San
Diego, California (-16.2% to US$130.58); and Minneapolis-St. Paul,
Minnesota-Wisconsin (-16.0% to US$92.38).
experienced the largest RevPAR decrease, down 38.3% to US$60.51.
Three additional markets reported RevPAR decreases of more than
25%: New York (-31.8% to US$154.95); Detroit (-28.3% to US$41.65);
and Chicago (-26.1% to US$68.84).
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