Market Recovery Monitor – April 23, 2022

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After its typical pre-Easter downturn, the US hospitality industry rebounded with an occupancy rate of 65.8% from April 17 to 23, 2022. This level was 2.9 percentage points from the 2019 comparison, while Easter Sunday occupancy exceeded that of Bank Holiday Sunday in 2019. From then on, occupancy was on average 3.7 percentage points lower than in 2019, weekends were not being only two percentage points lower. It should be noted that the occupancy rate has been 3.5 percentage points or less from 2019 levels for the past six consecutive weeks, which is the longest streak since the start of the pandemic. The average daily rate (ADR) remained well above 2019, with the level for the week 15% higher (2% higher after adjusting for inflation). The same goes for revenue per available room (RevPAR), which is 11% higher than the comparable week of 2019 (-2% after adjusting for inflation).

Weekly occupancy in the United States was the 10th highest in the pandemic era so far. The Florida Keys (86.7%) led the nation, followed by Charleston (80.8%) and Savannah (80.2%). Other notable occupancy levels were seen in Orlando (78.9%), which hosted The Cheerleading Worlds 2022, and New York (78.5%), which recorded its third-best level ever. . Of NYC’s 10 highest occupancy levels in the pandemic era, six have occurred in the past six weeks.

Weekend occupancy (Friday and Saturday) (78.2%) was at its highest level since early October 2021. Washington, D.C. and Charleston were among seven markets that reported weekend occupancy. end the highest of the pandemic era. Charleston had the best weekend occupancy (93.4%) of any market with nine others above 90%, including Austin, Orlando and San Diego. Palm Springs, the submarket where the Coachella Music and Arts Festival is held, experienced its third-highest weekend occupancy (89.0%) in the pandemic era after recording its highest high level (94.9%) the previous week (weekend 1 of the festival). California wine country also saw strong weekend occupancy, with Napa (90.7%) and Santa Rosa/Sonoma (91.0%) posting their highest weekend occupancy levels since March 2020 Nationally, last weekend was the 10th best of the pandemic era. Demand for rooms, however, was the seventh highest at the time and the highest this year and the past 28 weeks.

Weekday occupancy (Monday to Wednesday) (63.3%) increased slightly compared to the previous week. Among the top 25 markets and central business districts (CBDs), weekday occupancy fell slightly after Easter, but still ranked among the best in the pandemic era. At 67.3%, weekday top 25 occupancy was the fifth-highest, while CBD (63.6%) reported its sixth-best. With the 126th running of the Boston Marathon, Boston experienced its highest weekday occupancy rate (72.1%) since March 2020. Los Angeles and Washington, D.C. reported their second-best weekday occupancy rates of the era of the pandemic. Shoulder occupancy (Sunday and Thursday) was stable due to a drop on Easter Sunday, as is normal.

Looking only from Tuesday to Thursday, the Top 25 Market’s occupancy jumped to 71.8%, which was the highest level for those three days since just before the pandemic. The same is true for the CBDs where the occupancy rate reached 69.2%.

Source: STR
Source: STR
Source: STRSource: STR
Source: STR

ADR continued to surprise. This week’s level ($148) was 15% higher than the comparable week of 2019, and almost all US markets defined by STR (156 out of 166) reported higher ADR than the same week of 2019 Thirteen markets reported their highest pandemic-era ADR, the most since the start of the year. The weekly ADR for the top 25 markets (US$176) was the third highest in the pandemic era. For CBDs, this week’s ADR (US$227) was second best.

On an inflation-adjusted basis, the weekly real ADR was 2% higher than the comparable week of 2019. It was the 13th time that the real ADR exceeded 2019 since the start of the pandemic. Ninety markets saw their weekly real ADR exceed 2019.

While weekly RevPAR was only the 7th highest in the pandemic era, there were a few notable results. The top 25 markets saw weekly RevPAR hit its third-highest level since the start of the pandemic with weekends and Tuesday-Thursday at their highest levels in the pandemic era. For CBD, the week was its second best, with weekend RevPAR reaching its highest level yet. Six markets, including Boston, recorded their highest RevPAR since early March 2020. Overall, 126 of 166 markets saw weekly RevPAR surpass 2019 levels, which is the highest since the start of the year. Actual RevPAR was higher than 2019 in 77 markets.

In the last 28 days, 70% of the markets were at “Peak” RevPAR (RevPAR indexed to 2019 above 100) with 27% in “recovery” (RevPAR indexed at 2019 between 80 and 100) and only 3% in “recession” (RevPAR indexed at 2019 between 50 and 80). Actual RevPAR was at “Peak” in 40% of markets. The good news is that even on an inflation-adjusted basis, there are no markets in “depression” (RevPAR indexed to 2019 below 50).

Source: STRSource: STR
Source: STR
Source: STRSource: STR
Source: STR

around the globe

Outside the United States, the occupancy rate fell 0.2 percentage points from the previous week to 55.8%. The ADR fell 1.9% to $128, leading to a 2.2% drop in RevPAR. Fifty-three of the countries tracked on a weekly basis saw lower occupancy week-over-week – a regression from the previous week.

New Zealand saw a sharp rise in occupancy, up 9.6 percentage points week-on-week to 47.6%, as it opened its border to Australian visitors fully vaccinated on April 13, 13 after two years of closure. Israel also saw an increase in performance, with occupancy up 13.9 percentage points to 70.1%, coupled with a 10.3% increase in ADR due to Passover. Occupancy levels in China showed a continued recovery, up 1.2 percentage points, although this was before Beijing’s lockdown announcement.

Curaçao achieved the highest weekly occupancy rate in the world at 82.1%, followed by Puerto Rico at 82.0%. Northern Europe again recorded the highest occupancy rate (69.2%) of all the sub-continents, with Northern Africa having the lowest (41.4%).

Dubai’s occupancy rate fell to 60.5% as Ramadan held back visitors. Mestre & Venice reached its highest weekly occupancy rate and ADR since the start of the pandemic via the Venice Biennale. Rio de Janeiro also saw strong ADR growth, up 31.3% for the week.

Over the past 28 days, 23% of non-US markets remained in “Recession” with another 13% in “Depression.” This is a slight improvement over the previous week’s performance.

Source: STRSource: STR
Source: STR

big picture

The coming week should be flat or slightly higher based on the results of the previous year. However, several major events, including the New Orleans Heritage and Jazz Festival, are kicking off, which could boost performances ahead of the summer. We are also encouraged to see results and research pointing to the return of business travel. Based on a recent survey, the Global Business Travel Association (GBTA) said: “The majority (88%) of suppliers and travel management companies (TMCs) report that their bookings have increased over the past month. This is much more than the share that said the same thing in February (45%). On average, travel buyers say their company’s travel bookings are currently at 56% of pre-pandemic levels, up 22 points from February. » Additionally, Dr. Anthony Fauci, President Biden’s chief medical adviser, said the United States is “out of the explosive pandemic phase in its own right”, which should reduce travel fears and drive further gains in business travel.

About STR

STR provides premium benchmarking data, analysis and market insights for the global hospitality industry. Founded in 1985, STR operates in 15 countries with North American headquarters in Hendersonville, Tennessee, international headquarters in London, and Asia-Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of online commercial real estate information, analysis and marketplaces. For more information, please visit str.com and costargroup.com.

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