After Unanticipated 2020, Hotel Industry Knows What Its Up Against
Hotels in both the Middle East and Africa reported all-time lows in occupancy and revenue per available room (RevPAR), according to year-end 2020 data from STR.
Occupancy: 30.0% (-48.7%) – Average daily rate (ADR): US$78.75 (-10.1%) – Revenue per available room (RevPAR): US$23.62 (-53.9%)
Worsened pandemic metrics and assumptions of limited early-year travel led STR and Tourism Economics to slightly downgrade their latest U.S. hotel forecast. Full recovery of demand remains on track for 2023, while close-to-complete RevPAR recovery is still projected for 2024.
Europes hotel industry reported all-time lows in occupancy and revenue per available room (RevPAR), according to STR's year-end 2020 data.
Occupancy: 44.5% (-35.6%) – Average daily rate (ADR): US$74.99 (-22.2%) – Revenue per available room (RevPAR): US$33.39 (-49.9%)
56% Expect to Travel for Leisure; Business Travel Not Expected to Return Until 2024; Consumer Comfort with Travel Linked to Vaccine Distribution
Aggregate data for the Top 25 Markets showed lower occupancy (38.4%) but higher ADR (US$95.94) than all other markets.
December 2020 data from STR shows performance metrics closer to what was seen at the beginning of the pandemic.
Year-end 2020 data shows all-time lows across key performance metrics for U.S. hotels.