Hotels See Declines in Occupancy and Revenue Per Available Room

May 6, 2024

Delaney Sexton
Contributing Editor

Hotels See Declines in Occupancy and Revenue Per Available Room

In March, hotels saw some declines, particularly in occupancy and revenue per available room (RevPAR):

• Occupancy was at 63.7% in March 2024, down 2.5% from March 2023.
• RevPAR was $101.81, a decline of 2.2% from March 2023. This was the first decline since February 2021.
• The average daily rate (ADR) during March was $159.79, a minor increase of 0.4% from the year before.

Looking at more recent data, RevPAR fell during the last week of April after three positive weeks. From April 21 to April 27, RevPAR declined 2.5%. Occupancy also saw a minor decrease of 0.8%. The ADR (Average Daily Rate) declined 1.3%.

In the next few weeks, it is expected that hotel performance will stabilize ahead of the summer travel season. There are indications that travel might be slower during the summer, especially for middle- to lower-income households.

Sources:
STR Hotel Commentary March 2024
STR Weekly Insights April 21-27