Skip to content

Search

Latest Stories

STR: Weekend occupancy rates rose in states where COVID-19 restrictions eased

Occupancy also rose for the first week of May over the prior week, but still down YOY

OCCUPANCY WAS UP slightly for U.S. hotels in the first week of May compared to the previous week while still remaining much lower than the same time last year, according to STR. In 13 STR-defined submarkets occupancy increased over the weekend, led by Florida and Texas, as some states eased social distancing restrictions put in place for the COVID-19 pandemic.

Occupancy for the week of April 26 to May 2 stood at 28.6 percent, up from 26 percent the week before but down 58.5 percent compared to the week of April 28 to  May 4, 2019. It was at 23.4 percent for the week of April 12 to 18 and 21 percent for the week of April 5 to 11.


ADR dropped 44 percent to $74.72 for the week ending May 2 while RevPAR dropped 76.8 percent to $21.39.

“Week-to-week comparisons showed a third consecutive increase in room demand, which provides further hope that early-April was the performance bottom,” said Jan Freitag, STR’s senior vice president of lodging insights. “TSA checkpoint numbers, up for the second week in a row, aligned with this rise in hotel guest activity, which still remains incredibly low in the big picture. Overall, these last few weeks can be filed under the ‘less bad’ category.”

Freitag also said leisure demand was up for the first time in a while because of the occupancy increase in weekend stays in states that were easing restrictions.

“The first ‘real weekend’ with eased COVID-19 restrictions showed an obvious jump in hotel demand, especially in popular, warm-weather leisure spots,” he said. “Whether or not this becomes a trend remains to be seen, but the fact that there were people instantly willing to head out for leisure activity and stay in hotels is a positive sign for the industry. We have maintained throughout this pandemic that the leisure segment would be the first to return, it is just a matter of when.

“Hotel companies, together with the AHLA, are showing commitment to cleanliness and providing guests with a safe environment within their properties. At the same time, health experts have expressed concerns that increased leisure activity in public spaces could contribute to a potential second wave of COVID-19, which would obviously present added risk for the industry.”

The top 10 submarkets showing weekend over weekday occupancy increases are:

  • Galveston and Texas City, Texas, with a difference of 30.9 percent
  • Mobile, Alabama, with a difference of 27.7 percent
  • Daytona Beach, Florida, with a difference of 24.1 percent
  • Corpus Christi, Texas, with a difference of 23.6 percent
  • Panama City, Florida, with a difference of 20.1 percent
  • Myrtle Beach/North, South Carolina, with a difference of 19.1 percent
  • Fort Walton Beach, Florida, with a difference of 18.4 percent
  • Cedar City and St George, Utah, with a difference of 16.9 percent
  • Pensacola, Florida, with a difference of 14.7 percent
  • Savannah Historic District, Georgia, with a difference of 14.3 percent

STR also released its first profit and loss report on April 30 that showed GOPPAR for March was down 101.7 percent to -$2.10 compared to the same time last year.

More for you

Hilton

Hilton posts unit growth as Q2 RevPAR slips

Summary:

  • Hilton reported 7.5 percent net unit growth in the second quarter while systemwide RevPAR declined 0.5 percent year-over-year.
  • Net income and adjusted EBITDA for the first half of 2025 were $742 million and $1.8 billion, up from $690 million and $1.67 billion YoY.
  • For the third quarter of 2025, Hilton expects systemwide RevPAR to be flat to slightly down.

HILTON WORDLWIDE HOLDINGS reported 7.5 percent net unit growth in the second quarter of 2025, however systemwide RevPAR declined 0.5 percent year-over-year. The company said economic fluctuations are being felt but not hindering performance.

Keep ReadingShow less
Peachtree Group loan
Photo credit: Peachtree Group

Peachtree backs $42M loan for AFC deal

Summary:

  • Peachtree provided a $42 million floating-rate loan to Banyan Street Capital for the acquisition and repositioning of Atlanta Financial Center in Buckhead.
  • The deal delivers capital at a reset basis, with comps pricing 98 percent higher, reflecting strong collateral and execution.
  • It recently launched a $250 million fund to invest in hotel and commercial assets mispriced from market illiquidity.

PEACHTREE GROUP PROVIDED its first mortgage loan to Banyan Street Capital for the acquisition and repositioning of the 914,774-square-foot Atlanta Financial Center in Buckhead, Georgia. Peachtree said the office sector is at an inflection point, similar to the retail segment previously.

Keep ReadingShow less
Trump’s Proposed Visa Fee Threatens Seasonal Hospitality Workforce

Report: Trump visa fee sparks summer staffing fears

Summary:

  • Trump’s proposed $250 Visa Integrity Fee faces pushback from groups relying on seasonal J-1 workers from Latin America and Asia.
  • J-1 visa holders often work as housekeepers, amusement park staff, and lifeguards from pre-season through Labor Day; more than 300,000 use the visa annually.
  • DHS and the State Department have not clarified how the fee will be implemented or who qualifies for a refund.

A $250 VISA Integrity Fee in President Donald Trump’s Big Beautiful Bill is drawing criticism from groups that rely on seasonal workers from Latin America and Asia on J-1 and other visas, Newsweek reported. The organizations warn the cost, though sometimes refundable, could reduce the summer workforce that supports U.S. beach towns and resorts.

Keep ReadingShow less
Wyndham & Grubhub Offer Free Delivery to Guests & Staff

Wyndham, Grubhub offer free delivery to guests, staff

Summary:

  • Wyndham Hotels & Resorts is partnering with Grubhub to offer free product delivery to guests and staff at nearly 6,000 U.S. hotels across 20 brands.
  • A Grubhub account is required to activate the complimentary Grubhub+ membership; no credit card is needed and the membership does not auto-renew.
  • Wyndham recently deployed Elavon’s cloud payments interface to more than 6,000 U.S. and Canadian franchisees.

WYNDHAM HOTELS & RESORTS and Grubhub, an online ordering and delivery platform, will offer item delivery to guests and staff with no delivery fees and other benefits. The service is available at nearly 6,000 U.S. hotels across 20 brands, with orders placed through the Grubhub app on-site or by scanning a hotel QR code.

Keep ReadingShow less
U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less