STR: Q3 U.S. hotel occupancy lowest on record

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Third-quarter average daily rate fell 24.1% year over year to $101.25, while RevPAR dropped 48.5% to $48.58.
Third-quarter average daily rate fell 24.1% year over year to $101.25, while RevPAR dropped 48.5% to $48.58. Photo Credit: August_0802/Shutterstock.com

Third-quarter U.S. hotel industry occupancy was the lowest for any third quarter on record, according to STR. The absolute level declined 32.2% year over year to 48%. Still, that was a marked improvement from the second-quarter decline of 52.1% year over year to 33.5%, evidence the industry is slowly recovering.

Third-quarter average daily rate fell 24.1% year over year to $101.25, up from $83.59 for the second quarter. Revenue per available room dropped 48.5% to $48.58. Again, that's an improvement from the second quarter's fall of 69.9% year over year to $27.98.

The key performance indicators for the month of September, however, were down slightly from August. Occupancy for September 2020 compared to a year prior dropped 28.2% to 48.3%. Average daily rate declined 24.9% to $99.12. Revenue per available room declined 46.1% to $47.87.  

August's absolute U.S. occupancy levels had been the highest recorded since April. After the leveling off last month, recent October weekly data showed that average occupancy reached 50% for just the second time since the industry's low point, according to STR.

As it has since the pandemic's beginning, the overall industry on average performed better than the top 25 markets, both for the third quarter and for the month of September, save for the latter's ADR. Only three markets in September reported occupancy above 50%: Norfolk/Virginia Beach at 56.8%, San Diego at 54% and Los Angeles/Long Beach at 53.8%. 

By chain scale for September, economy, midscale and upper-midscale reported occupancies above 50%. Upscale was behind with 46.6%. Upper-upscale and luxury continued to lag, at 30.5% and 26.1%, respectively.

Source: Business Travel News

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