STR: U.S. Hotel Recovery Slows in August

After showing regular month-over-month increases since at least January, the three key U.S. hotel performance indicators each dipped in August compared with July numbers, according to STR, which in its recent forecast update had cautioned that demand could recede following the peak summer travel season.

Occupancy was 63.2 percent in August 2021, down 11.3 percent from August 2019, and below July 2021’s 69.6 percent level. Revenue per available room was $86.88, an 8.1 percent decline from 2019 and a drop from July’s $99.71. Average daily rate was $137.57, up 3.7 percent over 2019 levels on a nominal basis, but down from $143.30 last month.

The dips started at the beginning of August and continued through the month when looking at STR’s weekly U.S. hotel performance results. The company cited the seasonal slowdown in summer leisure travel, more schools returning to classrooms, greater concern around the delta variant and concern around Covid-19 cases as factors in the slowdown.

Of the top 25 markets, only five in July had occupancy levels below 60 percent. That number in August to doubled 10 markets. None of the 25 markets reported an occupancy increase over 2019 levels.

Given Hurricane Ida’s affect, New Orleans reported the lowest occupancy for August at 42.7 percent. San Francisco/San Mateo reported the steepest decline in occupancy compared with 2019, a 40.3 percent drop to 53.3 percent. Norfolk/Virginia Beach reported the highest occupancy level at 74.2 percent, which was still down 5.3 percent from August 2019. Oahu and San Diego also were above 70 percent occupancy.

Donna M. Airoldi www.businesstravelnews.com