Hotel News Now: 5 things to know: 19 March 2020
- US RevPAR down 5%
- Chinese booking site predicts rebound
- Marriott outlines coronavirus response
- Analysts see risk for hotel REITs
- HotelAVE predicts five-year recovery period
By the HNN editorial staff
U.S. RevPAR down 32.5%: With the U.S. economy coming to a screeching halt amid con erns about COVI?-19’s spread, U.S. ho els posted predictably bad performance dunng the week ending 14 March. According to data from HNN’s parent company, STR, revenue per available room dropped 32.5% year over year to $63.74. That drop can largely be attributed to a 24.4% drop in occupancy to 53%, but there was also a 10.7% drop in average daily rate to $120.30. Seattle, which was one of the first U.S. markets to struggle with coronavirus outbreaks, had the worst performance among the top 25 markets, with a 66.1% drop in RevPAR.
HotelAVE predicts a five-year recovery period. While some are hopeful for a quick rebound for travel following the lifting of restrictions, hotel asset management group hotelAVE is predicting a five-year recovery period for the hotel industry.
“Hotels in the United States must not just focus their efforts, energies and resources on getting through the pandemic but, most importantly, they must prepare for the recovery from a financial, operational and marketing standpoint,” said hotelAVE CEO Michelle Russo.