The U.S. hotel industry continued to see revenue, rates and occupancy fall in the third quarter of 2009, with virtually every major market in the country experiencing double-digit percentage year-over-year drops in revenue per available room, according to Smith Travel Research.
The firm on Monday reported that occupancy during the third quarter was 60.5 percent. While this is up slightly from the levels seen earlier in the year, it still is down 7.9 percent from third-quarter 2008 occupancy. Additionally, average daily rate was down 9.8 percent year-over-year for the quarter, and RevPAR dropped 16.9 percent.
"The industry has now experienced five consecutive quarterly RevPAR declines and eight consecutive quarterly occupancy declines," Smith Travel Research senior vice president Bobby Bowers said in a statement. "Fourth-quarter comparables will be much easier, but we still expect negative industry RevPAR movement for the remainder of 2009 and most of 2010."
Every top market except Norfolk/Virginia Beach, Va., had double-digit percentage point decreases in RevPAR, according to STR. The largest drops were in Detroit and Houston, both of which fell 28.6 percent, and New York, which fell 28.5 percent. New York also saw the biggest decline in rates, with the city’s average daily rate down 25.4 percent to $205.75.
The Hawaiian island Oahu was the only top market to hold occupancy nearly steady year over year, according to the firm. Houston, Detroit, Dallas, Phoenix and New Orleans saw the largest occupancy drops during the quarter.
—Nielsen Business Media
STR: U.S. Hotel Performance Continues Fall in Third Quarter
Virtually every major market in the country experienced double-digit percentage year-over-year drops in RevPAR.
STR: U.S. Hotel Performance Continues Fall in Third Quarter
Virtually every major market in the country experienced double-digit percentage year-over-year drops in RevPAR.
