STR: Occupancy drops further as October ends

U.S. HOTEL OCCUPANCY continued to fall in the last week of October, reaching its lowest point since late June, according to STR. A rise in cases of COVID-19 may be partially to blame.

Occupancy for the week finished at 44.4 percent, down from 48 percent the week before and 29 percent less than the same time last year. ADR was $91.56 compared to $95.49 the previous week and a 27.4 percent decline from the previous year. RevPAR fell to $40.70 after finishing at $45.83 the prior week, a 48.4 percent year-over-year decline.

“With rising COVID-19 case numbers and less leisure travel, the U.S. saw a second consecutive week with fewer hotel guests,” STR said. “During October 25 to 31, room demand fell 1.3 million from the prior week, leading to the country’s lowest occupancy level since the week of June 14 to 20.”

STR’s top 25 markets in total saw lower occupancy than the national average, 41 percent, but higher ADR at $96.91. Only two surpassed 50 percent occupancy, Atlanta at 53 percent and New Orleans at 52.9 percent.

Norfolk/Virginia Beach, Virginia, dropped below 50 percent occupancy for the first time since the week ending June 6. Other lowest markets included Oahu Island, Hawaii, at 23.8 percent and Minneapolis/St. Paul, Minnesota-Wisconsin, with 30.7 percent.