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STR: August performance up over July but still at record low

Performance metrics also continued to drop during the second week of September

U.S. HOTELS SAW a rise in performance during August from July, but occupancy levels for the month were the lowest of any on record, according to STR. Also, the performance continued to shrink week over week in the week ending Sept. 12.

Occupancy in August averaged 48.6 percent, up from July’s 47 percent but down 31.7 percent from the same time last year. ADR in August averaged $102.46 versus $101.76 in July but dropping 22.8 percent from last year. RevPAR ended the month at $49.83, higher than $47.84 in July and down 47.3 percent from 2019.


“The absolute occupancy level was the lowest for any August on record in the U.S., but all three key performance metrics were up from July levels,” STR said in a statement. “Recent September weekly data shows occupancy just below 50 percent due to a slight decrease in demand.”

For example, the week ending Sept. 12 saw occupancy hit 48.5 percent, down from 49.4 percent the previous week and dropping 30.2 percent from the previous year. ADR for the most recent week was $98.99 compared to $100.97 week to week and down 25.5 percent from last year. RevPAR came in at $47.96, down from $49.87 the week before and a 48.1 percent decline year over year.

“Occupancy for the week prior was lifted by Labor Day Weekend. For the week ending Sept. 12, demand was 1.6 percent less, at 17.7 million room nights sold,” STR said. “The highest occupancy markets were those housing displaced residents from Hurricane Laura and western wildfires, with Louisiana North (77.2 percent) and Louisiana South (76.8 percent) showing the highest levels in the metric. The Oregon Area (73.7 percent) and California North (73.3 percent) markets were also among the top 5 highest occupancy levels for the week.”

STR’s top 25 markets saw declines in August from the same time last year, with Oahu Island, Hawaii, seeing the lowest occupancy, down 69.9 percent to 26.8 percent, and the largest decrease in RevPAR, down 81.4 percent to $42.13. San Francisco/San Mateo, California, posted the steepest decline in ADR, dropping 50.1 percent to $123.23.

The top 25 together for the week of Sept. 12 had lower occupancy than the national average, ending at 43.2 percent, but higher ADR, $101.10, than all other markets.

Oahu also had the lowest occupancy for the week, down 21.1 percent, followed by  Orlando, Florida, with 31.6 percent. Three markets that reached or surpassed 50 percent occupancy for the  week were Norfolk/Virginia Beach, Virginia, with 58.8 percent; San Diego with 57.5 percent; and Los Angeles with 56.7 percent.

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