STR: Occupancy tops 40 percent in week ending June 13

ANOTHER WEEK, ANOTHER step toward recovery for U.S. hotels during the week ending June 13, according to STR. Occupancy finally rose above 40 percent for the first time in weeks but the numbers were still below last year.

Occupancy for the second week of June was 41.7 percent, down 43.4 percent from last year. ADR fell 33.9 percent to $89.09 and RevPAR was down 62.6 percent to $37.15.

“Powered by the slow and steady rise in weekly demand, the industry clawed its way above 40 percent occupancy,” said Alison Hoyt, STR’s senior director for consulting and analytics. “That was still down substantially from the comparable week last year, which was 73.6 percent, but an obvious improvement from the country’s low point in mid-April. As we have noted, the drive-to destinations with access to beaches, mountains and parks continue to lead the early leisure recovery. With more consistent demand, we’re beginning to see more pricing confidence in those areas as well.”

For the top 25 markets, occupancy was 37.2 percent, slightly lower than the national average, but ADR was slightly higher at $91.65.

Norfolk and Virginia Beach, Virginia, was the only major market to go above 50 percent occupancy, up to 53.3 percent. Phoenix was second highest at 47.6 percent, followed by New York at 45.7 percent and Tampa and St. Petersburg, Florida, area at 44.7 percent.

Oahu Island, Hawaii, again was lowest at 10.8 percent, followed by Boston at 25.7 percent and Orlando, Florida, at 26.4 percent. Seattle, Washington, occupancy was 31.5 percent, up slightly from 29.5 percent the week prior.