STR: Occupancy for U.S. hotels dropped 68.5 in first week of April

U.S. HOTELS CONTINUED to see severely diminished performance from the COVID-19 pandemic during the week of March 29 to April 4, according to STR.

Occupancy dropped 68.5 percent to 21.6 percent, ADR went down 41.5 percent to $76.51 and RevPAR declined 81.6 percent to $16.50. That followed similarly steep declines during the last week of March.

“Data worsened a bit from last week, and certain patterns were extended around occupancy,” said Jan Freitag, senior vice president of lodging insights for STR. “Economy hotels continued to run the highest occupancy, while interstate and suburban properties once again posted the top occupancy rates among location types. This shows there are still pockets of demand while more than 75 percent of the rooms around the country are empty. We don’t expect any material change in the magnitude of RevPAR declines for the time being.”

The nation’s top 25 markets saw occupancy drop 74.7 percent to 19.4 percent, ADR decline 47 percent to $85.61 and RevPAR reduced 86.6 percent to $16.57.  Oahu Island, Hawaii, experienced the largest decrease in occupancy, dropping 90.7 percent and the only single-digit absolute occupancy level of 7 percent. That led RevPAR there to drop 93.7 percent to $10.83.

Minneapolis/St. Paul, Minnesota-Wisconsin, posted the largest decline in ADR, losing 57 percent to fall to $68.23.