The Numbers Start Coming In….

Main Photo: The New York city skyline – Photo credit: Getty Images/TomasSereda

Date: March 2020

Location: UK and USA

Name: STR Monthly Reports

How Bad Is It – UK: 
LONDON—STR’s preliminary data for hotels in London shows slightly negative performance in February 2020 that worsened into double-digit declines during the first week of March.
February preliminary data (compared with February 2019):
• Occupancy: -2.3% to 76.3%
• Average daily rate (ADR): +0.3% to GBP133.57
• Revenue per available room (RevPAR): -2.1% to GBP101.91

1-8 March preliminary data (compared with corresponding week in 2019):
• Occupancy: -21.0% to 65.5%
• ADR: -8.5% to GPB128.39
• RevPAR: -27.7% to GPB84.14
As concerns have grown around the COVID-19 outbreak, STR analysts note that London daily data shows 14 consecutive days (24 February through 8 March) of decreases across the three key performance metrics. Occupancy and RevPAR fell by double figures for eight of those days (1-8 March).

How Bad Is It – USA:

In comparison with the week of 3-9 March 2019, the industry recorded the following:
• Occupancy: -7.3% to 61.8%
• Average daily rate (ADR): -4.6% to US$126.01
• Revenue per available room (RevPAR): -11.6% to US$77.82

Performance declines were uniform across chain scales, classes and location types.

“The question over the last several weeks was ‘when’, not ‘if’ this impact would hit—well, when has arrived,” said Jan Freitag, STR’s senior VP of lodging insights. “Like so many other areas of the world, concerns around the coronavirus outbreak have now hit U.S. hotel occupancy hard. Not a surprise given the amount of event-related news we have seen, but group cancellations were felt across the markets and classes in addition to consistent declines in the transient segment. ADR is starting to decline as well, rapidly in the case of San Francisco. This is quite likely the beginning of a bad run that will get worse before it gets better.”

Overall, 23 of the Top 25 Markets registered a RevPAR decline.

San Francisco/San Mateo, California, posted the week’s steepest drop in RevPAR (-45.5% to US$134.26), due largely to the largest decline in ADR (-30.4% to US$212.61).

Anaheim/Santa Ana, California, experienced the largest drop in occupancy (-27.3% to 59.6%) and the second-largest decreases in ADR (-19.9% to US$155.14) and RevPAR (-41.8% to US$92.42).

Seattle, Washington, saw the second-steepest decrease in occupancy (-26.4% to 52.3%), which pushed the third-largest drop in RevPAR (-34.8% to US$67.94).

Of note, New York, New York, occupancy fell 13.1% to 72.1%, while ADR in the market was down 8.3% to US$188.59.

Two markets saw occupancy growth for the week: Detroit, Michigan (+1.9% to 62.2%), and Nashville, Tennessee (+1.8% to 75.8%).

Two markets reported ADR increases: Oahu Island, Hawaii (+1.7% to US$223.05), and Norfolk/Virginia Beach, Virginia (+1.3% to US$85.46).

THPT Comment: STR’s hotel performance sample comprises 68,000 properties and 9.1 million rooms around the globe. Not pretty reading, as we knew…The USA appears to be behind the UK…but that will alter by April.

First Seen: STR Press releases

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