The strength of weekday bookings, which typically indicate business travel, boosted demand for U.S. hotels to their biggest weekly increase since early October, as revenue per room available across the industry was the closest to 2019 levels since August.
The latest weekly performance of U.S. hotels reinforces STR’s updated forecast, which predicts the industry will return to 2019 demand and average daily rate levels by the end of 2022. The improvement comes a week after the northern border -American is open to international travelers.
Per the week ending November 13th, the U.S. hotel industry sold 704,000 more room nights than the previous week, according to the latest “Market Recovery Monitor” report from STR, CoStar’s hospitality analysis company.
Weekly demand has increased in 21 of the last 33 weeks and the most recent week’s gain was the 10th largest in that period. With the increase, employment rose to 61.6%, 1.9 percentage points more than the previous week.
Hotel occupancy in the United States was 96% of what it was during the same week in 2019, the highest it has indexed since early July.
The average daily rate also improved, 1.3% more weekly, to a level 3% higher than it was in 2019. As a result, revenue per available room strengthened by 4.5% during the week and reached their best comparison of 2019 since August.
Working days accounted for most of the increase in hotel demand. The weekly gain in demand on weekdays was the largest recorded since the week after Labor Day.
Demand rose further on Sunday and Monday, with major improvements also on Tuesday and Thursday. While those days led the week’s performance, weekday occupancy remained lower than on weekends: 57% versus 73%.
Weekend occupancy was 90% of what was the same week in 2019, while weekend occupancy was 11% higher than in 2019.
In the 25 main markets, hotel bookings from Monday to Wednesday accounted for almost half of the increase in weekly demand. This indicates that business travel continues to strengthen even as the year approaches. Occupancy of the top 25 markets in those three days reached 59%, the highest since late summer, and was led by Phoenix with 73% occupancy.
New York City followed Phoenix with a three-day weekday occupancy of 68%, which is the highest on the market since the week before the first blockade. New York City’s full-week occupancy between Sunday and Thursday reached 69% and its weekend level topped 87%, both of which were pandemic-era highs that went up. contribute to a full week average of 74%.
More than half of the hotels reported occupancy of more than 60%. In the 25 main markets, almost two-thirds of hotels were at or above this level. In New York City, more than three-quarters of hotels reported more than 70% occupancy, with 22% of hotels reporting 90% or more occupancy, most of the latter 20 weeks.
ADR advanced week-to-week in 54% of all markets with the highest gains observed at destination locations, such as Daytona Beach, the Florida Keys and New Orleans. The weekly ADR in 80% of all markets was higher than the comparable week of 2019. Adjusted for inflation, 57% of all markets reported a higher ADR than the same week in 2019. In overall, the inflation-adjusted weekly ADR was 96% of the 2019 level, similar to what it was during the summer.
The weekly RevPAR was 99% of 2019 levels, which was among the highest values of the year. Adjusted for inflation, the RevPAR was 93% of what it was in 2019. The industry remains in the “recovery” category according to STR’s “Market Recovery Monitor”.
On a 28-day total mobile basis, RevPAR was 92% of what it was in 2019, with 62% of markets at the “peak,” and RevPAR surpassed 2019 levels. Adjusted for inflation, 49 % of markets were in the “peak” RevPAR and another 34% were in “recovery”, with the RevPAR between 80% and 100% of 2019 levels.
San Francisco and San Jose remain the only two markets in the “depression” category, with RevPAR below 50% of 2019 levels. Both markets, however, are improving.
Isaac Collazo is a VP Analytics at STR.
This article represents an interpretation of the data collected by CoStar’s hospitality analysis company, STR. Please feel free to contact an editor for any questions or concerns. For further analysis of STR data, visit the data information block at STR.com.