Excerpt from CoStar
Weekly U.S. hotel occupancy continues to fall short of last year’s levels amid changes in travel patterns – shifting from resorts to top 25 markets and international outbound.
The occupancy challenges likely are not a result of increased economic uncertainty as air travel, based on TSA screenings, was up by nearly 10% year over year and has been up since April on a seven-day moving average basis.
Hotel average daily rate growth in the U.S. is also slowing, but that is likely a result of changes in demand from pure leisure to a more normal mix of business transient, group and leisure.
Outside of the U.S., the hotel industry’s pandemic recovery remained in full swing.
U.S. occupancy is expected to increase again this week, heading to its annual apex, which should occur this year in the week ending July 22. ADR growth is likely to remain somewhat muted as the demand mix normalizes. As a result, revenue per available room is anticipated to be flat to slightly down compared to last year. Global performance, excluding the U.S., is expected to show healthy growth over the next several weeks.
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