CoStar: U.S. hotel performance continues downward trend in the second week of August
Hawaiian island of Maui saw steep declines as a result of deadly wildfires
By Vishnu Rageev RAug 19, 2023
U.S. HOTEL PERFORMANCE declined during the second week of August compared to the previous week, according to CoStar. However, the results primarily displayed positive year-over-year comparisons, though wildfires on the Hawaiian island of Maui led to steep declines there.
Occupancy stood at 68.3 percent for the week ending on Aug. 12, slightly lower than the previous week's 68.9 percent, and it remained unchanged compared to 2022, according to CoStar. The ADR was $156.47, down from the prior week's $158.10, but demonstrated a 2 percent growth from the same period last year. RevPAR came in at $106.89, below the prior week's $108.97, while still reflecting a 2 percent increase from 2022.
Among the top 25 markets, Los Angeles recorded the largest year-over-year growth in each of the key performance metrics during August’s second week: occupancy surged by 13.5 percent to reach 82.6 percent, ADR increased by 8.4 percent to $222.98, and RevPAR rose by 23 percent to $184.16, benefiting from the Taylor Swift Eras Tour.
New York City reported the second-highest performance gains: occupancy rose by 7.3 percent to 83.6 percent, ADR climbed by 8.3 percent to $258.39, and RevPAR increased by 16.3 percent to $216.06.
St. Louis saw the steepest RevPAR decline, dropping by 22.1 percent to $63.80.
Of note, outside the top 25 markets, Maui Island reported significant year-over-year declines in both occupancy, which decreased by 22.6 percent to 57.1 percent, and RevPAR, down by 21.7 percent to $389.92. The island was recently devastated by wildfires that killed at least 114 people with approximately 1,000 missing, according to news reports.
Sonesta launched Americas Best Value Studios, an extended-stay version of ABVI.
The model targets owners seeking limited front desk and housekeeping.
The brand meets demand for longer-term, value-focused stays.
SONESTA INTERNATIONAL HOTELS Corp. launched Americas Best Value Studios by Sonesta, an extended-stay version of its franchised brand, Americas Best Value Inn. The model targets owners seeking limited front desk and housekeeping, optional fitness center and lobby market along with standard brand requirements.
The brand aims to address the growing demand for longer-term, value-driven accommodations, Sonesta said in a statement.
"Americas Best Value Studios by Sonesta represents a strategic evolution of our trusted Americas Best Value Inn brand," Keith Pierce, Sonesta’s executive vice president and president of franchise development, said. "We are expanding our offerings to directly address the increasing demand within the extended-stay segment, providing a practical solution for travelers seeking longer-term lodging at value. This new brand type allows our local franchised owner-operators to tap into a growing market while maintaining the community-focused experience that Americas Best Value Inn is known for."
ABVI has a majority presence in secondary and tertiary markets, the statement said.
The extended-stay brand’s operational model features a front desk, bi-weekly housekeeping, on-site laundry and pet-friendly accommodations, Sonesta said. Guests can also earn or redeem points through the Sonesta Travel Pass loyalty program.
In August, Sonesta named Stayntouch its preferred property management system after a two-year review of its ability to support the company’s franchise model. The company operates more than 1,100 properties with more than 100,000 rooms across 13 brands on three continents.
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