U.S. Hotel Occupancy Increased Slightly Boosted in Part by Labor Day Weekend

According to the latest data from STR, Tennesse boosted in part by Labor Day weekend, U.S. hotel occupancy grew slightly over the previous week.

Occupancy fell 18.9 percent year over year to 49.4 percent, for the week of August 30 through September 5, 2020. The average daily rate (ADR) dropped 17.1 percent to $100.97, and revenue per available room (RevPAR) declined 32.8 percent to $49.87. Hotel demand grew to 18 million room nights sold (up 500,000 weeks over the week).

September 5, Saturday, occupancy came in at 69 percent—just 2.6 percent less than the comparable Saturday in 2019, and leisure markets that have shown the highest summer occupancy levels reported strong increases from the previous weekend.

The markets with the highest occupancy for the week were not leisure destinations. Rather, the high occupancy markets were those housing displaced residents from Hurricane Laura and the California wildfires.

Aggregate data for the Top 25 Markets showed lower occupancy (44.3 percent), but higher ADR ($101.82) than all other markets.

Norfolk/Virginia Beach, Virginia, was the only one of those major markets to reach a 60 percent occupancy level (60.6 percent).

Five additional markets reached or surpassed 50 percent occupancy: Houston, Texas (57.8 percent); Los Angeles/Long Beach, California (55.3 percent); San Diego, California (54.6 percent); New Orleans, Louisiana (51.7 percent); and Atlanta, Georgia (50.2 percent).

Houston was the only market to report a year-over-year increase in occupancy (up 13.5 percent), which is attributable to evacuations and displaced residents due to Hurricane Laura.

Markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (24.4 percent), and Orlando, Florida (30.9 percent).