November 30, 2022
C-Suite Wednesday – Hotels See 20% Increase from 2019 in Revenue Per Room
Based on an STR report from last week, hotel performance in the U.S. experienced improved occupancy and revenue per available room when compared to pre-pandemic rates.
Here is the data:
• From November 13 through 19, the hotel room occupancy rate was 63%. When compared to the comparable week in 2019, the occupancy rate increased by 3.4%.
• The average daily rate (ADR) was $144.50, up 15.9% from a comparable week in 2019.
• The revenue per available room (RevPAR) was $91.02, an increase of 19.8% compared to 2019.
• In the top 25 markets, Phoenix showed the largest increase from 2019 to 2022 in the three major metrics. Their occupancy rate increased by 13.7% to 81.9%, their ADR increased by 36.4% to $175.22, and their RevPAR increased by 55% to $143.48.
• The only cities that had RevPAR declines from 2019 are San Francisco with a 54.7% drop to $143.60 and Denver with an 8.2% drop to $85.81.
Coleman’s 13th annual SBA Hotel Financing – What SBA Credit Underwriters Need to Know for 2023 webinar takes place today at 2:00 p.m. Eastern time. All Registrants will Receive Coleman’s 2023 SBA Hotel Lending Guide.
You Will Learn:
● Supply and Demand Analysis
● SBA Delinquency Trends
● Hotel Cap Valuations
● Occupancy Benchmarks
● Franchise vs Mom and Pop
● Cash Equity Benchmarks
● SBA 7(a) and 504 Structures
● USDA B&I Lending Participations