U.S. Market Recovery Monitor – 24 July 2021 – STR

Infographic - Source - STR - U.S. Hotel Occupancy
U.S. Market Recovery Monitor – 24 July 2021

For the week ending 24 July 2021, absolute revenue per available room (RevPAR) broke the US$100 barrier for the first time since October 2019. At US$101, in fact, RevPAR was at its highest level since the week of 27 July 2019.

With that said, demand is slowing, as expected, with summer quickly coming to an end as well as an increase in COVID-19 cases. Demand was up only 0.6% week on week, nudging occupancy to 71.4%, the country’s highest level since October 2019. Keep in mind, however, that the middle weeks of July are historically the highest occupancy weeks of the year. Overall, room demand remained above 27 million for a second consecutive week.

Even though demand produced little week-to-week growth, weekday occupancy saw its highest level since the start of the pandemic (67.6%) with weekend occupancy dropping slightly but remaining above 80% for a second consecutive week. On a total-room-inventory basis (TRI), which accounts for temporarily closed hotels, of which 1.4% of U.S. rooms are still closed, weekly occupancy was 68.7% and RevPAR was US$98. Both of those values were the highest since October 2019.

Despite increased concern and coverage in the uptick in pandemic cases, market-level demand remained solid with 38% (63 of 166) posting higher demand than in the corresponding week of 2019. That percentage was nearly unchanged from the previous week. Market occupancy ranged from 94% in Gatlinburg/Pigeon Forge (the leader for the past three weeks) to 55% in Tucson. Overall, two markets posted weekly occupancy above 90%, and 54% of all markets saw occupancy at 70% or better, down only slightly from the previous week. For a second consecutive week, more than 75% of all hotels reported occupancy of 60% or more with 21% of all U.S. hotels seeing 90%+ occupancy in the week. 

ADR (US$142) continued to push ahead to a record-breaking level. Weekend ADR also achieved a historic high (US$159) with weekday rates above US$133 for a third consecutive week. The Top 25 Markets produced ADR above $151, which was the best average for the major markets since early 2020. Outside the Top 25, ADR was again at a record level, beating the previous high set three weeks ago. For the past three weeks, more than 71% of all markets have reported weekly ADR that is higher than what it was in the comparable week of 2019. ADR in Maui, which topped US$573, was the highest of all markets, as it has been for the past 15 weeks, and remained above US$500 for a fourth straight week. Other ADR leaders included the Florida Keys, Hawaii/Kauai, Oahu, and Myrtle Beach. In all, 17 markets had weekly ADR above US$200, unchanged from the previous two weeks.

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