revpar
STR: U.S. Hotel Results for Week Ending 21 March
STR | March 26, 2020
HENDERSONVILLE, Tennessee—Showing further effects of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of 15-21 March 2020, according to data from STR. In comparison with the week of 17-23 March 2019, the industry recorded the following: Occupancy: -56.4% to 30.3% Average daily rate (ADR): -30.2% to US$93.41 Revenue per available room (RevPAR): -69.5% to US$28.32 “RevPAR decreases are at unprecedented levels—worse than those seen during 9/11 and the financial crisis,” said Jan Freitag, STR’s senior VP of lodging insights. ...
STR: U.S. Hotel Results for Week Ending 14 March
STR | March 19, 2020
Showing further COVID-19 impact, the U.S. hotel industry reported negative year-over-year results in the three key performance metrics during the week of 8-14 March 2020, according to data from STR. In comparison with the week of 10-16 March 2019, the industry recorded the following: Occupancy: -24.4% to 53.0% Average daily rate (ADR): -10.7% to US$120.30 Revenue per available room (RevPAR): -32.5% to US$63.74 Performance declines were uniform across chain scales, classes and location types. “To no surprise, the hurt continued and intensified for hotels around the country,” said Jan Freitag, STR’s senior VP of lodgin...
Fitch Revises North American CMBS Hotel Outlook to Negative; Coronavirus Adds to Expected Decline
Fitch Ratings | March 13, 2020
Fitch Ratings has revised its North American CMBS hotel asset performance outlook to negative from stable/negative. The negative outlook revision for the sector is due to several factors including new supply and weakening economic conditions. Fitch expects RevPAR growth to flatten out in 2020 and then decrease by a low single digit percent in 2021. The impact from the coronavirus will exacerbate hotel cash flow declines and rising expenses from wages and real estate taxes may exceed revenue growth. Hotels will be the first property type to be affected by the coronavirus due to reduced tourism and travel, and a slowdown in economic activ...
HVS Industry Statistics Update – Q4 2019
Jerod S. Byrd | January 3, 2020
By Jerod Byrd Occupancy levels across the U.S. remained generally stable through October 2019, while ADR registered a marginal increase of less than 1%. Research suggests that RevPAR will end 2019 below the 1% mark; this represents a further year-over-year deceleration in RevPAR, which has been the general trend since 2015. The continued entrance of new supply and the slowdown in job growth are the primary factors contributing to the recent trend. Supply is anticipated to continue to increase by nearly 2% in 2020, which will likely outpace demand growth. While RevPAR is projected to remain positive in 2020, the decelerating growth trend is...
UK Q3 Ends on High Note With RevPAR and GOPPAR Gains
November 14, 2019
The third quarter ended on a high note for U.S. hotels, as September profit per room climbed year-over-year, indication that the current cycle still has teeth. GOPPAR in the month was up 1.9% over the same time last year, part of a third quarter that saw profit grow 0.2%, dragged down by a challenging July when GOPPAR decreased 2.0% YOY, according to data from HotStats. September’s bottom-line rise was fueled by a 1.1% YOY jump in RevPAR, led wholly by a 1.4% increase in average room rate. Occupancy for the month was down 0.3 percentage points YOY. The corporate segment led the growth in RevPAR, with a stout 5.1% YOY increase in ra...
3 Reasons You Can’t Trust RevPAR
HotStats | October 14, 2019
Revenue per available room, or RevPAR, has historically been the most widely used metric for benchmarking performance in the hospitality industry. Its success as a key performance indicator or KPI is the result of its efficiency and simplicity. RevPAR is efficient because it combines the results of both occupancy and average rate into one number. And it’s simple, because all you need to calculate it is occupancy and average rate: RevPAR = Occupancy * ADR But its simplicity and straightforwardness conceal its faults and limitations. Here are three reasons you can’t put all your eggs in the RevPAR basket: 1. RevPAR does not measure...
Managing RevPAR for Profits
CBRE | September 18, 2019
By Robert Mandelbaum and Bram Gallagher Ph.D. Per the name, the historical role of revenue managers has been to maximize revenue - specifically rooms revenue or RevPAR. RevPAR growth is achieved by increasing occupancy and/or average daily rates (ADR). Basic economic theory says that prices influence changes in demand (rooms occupied). Depending on the date and market conditions, an increase in ADR typically tends to mute, or reduce, changes in demand. Conversely, a lowering of ADR will most likely stimulate demand and increase occupancy. Historically, revenue managers have adjusted ADR to find the best mix of occupancy and ADR that...
RevPAR High Note Shattered by Profit Din at UK Hotels
HotStats | August 26, 2019
In a scenario that’s becoming exceedingly familiar, and one that illustrates the frequent occurrence of revenue and profit misalignment, RevPAR at hotels in the UK hit a high in July, but GOPPAR turned negative, sapped by rising costs, according to the latest data tracking hotels from HotStats. July is historically a peak month for UK hotels, with high occupancy enabling premium pricing that helps fuel top-line performance. This year was no different, with hotels recording a 1.0% increase in RevPAR to £117.25, led by 86.6% room occupancy coupled with a 1.5% year-over-year increase in average room rate to £135.52. The growth in Re...
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