STR: “2020 is Officially the Worst Year on Record for U.S. Hotels”

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The U.S. hotel industry reported all-time lows in occupancy and revenue per available room (RevPAR), according to year-end 2020 data from STR.

In addition to historically low absolute levels in the aforementioned metrics, average daily rate (ADR) came in lower than any year since 2011. Year-over-year declines were the worst on record across the three key performance metrics.

  • Occupancy: 44.0% (-33.3%)
  • Average daily rate (ADR): US$103.25 (-21.3%)
  • Revenue per available room (RevPAR): US$45.48 (-47.5%)

For the first time in history, the industry surpassed 1 billion unsold room nights, which eclipsed the 786 million unsold room nights during the great recession in 2009. Based on November year-to-date results, the industry is expected to show nearly zero profit for the year when STR releases P&L data next week.

Among the Top 25 Markets, Minneapolis/St. Paul, Minnesota-Wisconsin, reported the lowest occupancy level (33.3%), which represented a 49.9% decline in year-over-year comparisons.

Tampa/St. Petersburg, Florida (50.8%), was the only Top 25 Market to reach 50% occupancy. The market’s occupancy level was still 29.4% lower than 2019.

Oahu Island, Hawaii, was the only major market to post ADR above US$200, at US$215.57 (-10.5%), even as the market saw the steepest year-over-year occupancy decline (-53.7% to 39.0%).

Norfolk/Virginia Beach, Virginia, came in closest to its 2019 comparable with occupancy of 49.1% (-22.7%) and RevPAR at US$43.93 (-34.7%).

In aggregate, the Top 25 Markets showed lower occupancy (42.9%) but higher ADR (US$114.09) than all other markets.

All of STR’s COVID-19 analysis can be found here.

About STR
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.

MK

For 20+ years, the MEET family of products have provided regional and national resources that have kept corporate, association, medical, education, independent, and religious meeting and event planners informed about relevant vendors, industry news, tech innovations, and resources that impact and influence how and where they plan their group business.

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