NASHVILLE, Tennessee – U.S. hotels in July continued their steady performance improvement, STR data shows. (STR is the parent company of Hotel News Now.)

Advertisements

The trends continued into August as occupancy hit 50% in the week ending 15 August, reflecting growing demand amid ongoing summer travel.

Operators, however, are preparing for a post-Labor Day slump.

Room demand is increasing, and occupancies are slowly rising, but the metric we don’t really talk about much is average daily rate. In July, ADR decreased around 25% from July 2019, which probably reflects the mix shift in the consumers—away from corporate to more leisure. This implies that as corporate demand returns, we will see some pricing power on the upper end of the segment scale, which could then lift performance once again.

1. Small victories in July

July revenue per available room declined 52%, a slightly smaller decrease than was recorded in June. The weekly data shows RevPAR change is now firmly better than -50%.