July 2022 Prime-Line Metrics (share change from July 2019)
- Occupancy: 69.6% (-5.4%)
- Common day by day charge (ADR): US$159.08 (+17.5%)
- Income per obtainable room (RevPAR): US$110.73 (+11.2%)
Key factors from the month:
- Occupancy (absolute and index) declined month over month whereas ADR and RevPAR continued to rise.
- Actual ADR (inflation-adjusted) was almost 2% above the pre-pandemic comparable.
- Decrease weekend occupancy was the most important contributor to softened July occupancy.
- Group demand dropped month over month due to much less weekend teams, though weekday teams continued to enhance.
- Regardless of softened weekend occupancy nationally, leisure-based markets reported the best occupancy within the Prime 25 Markets and the best demand progress nationwide.
- The variety of rooms in building continued a downward trajectory.
- U.S. lodge GOPPAR exceeded the pre-pandemic comparable for a fourth consecutive month. Every of the important thing bottom-line metrics, nevertheless, decreased barely from June, whereas whole earnings elevated with peak summer season room demand and revenues.
Segmentation
Group fell when taking a look at whole demand and at demand indices to 2019.
Particularly, leisure-based weekend teams got here in noticeably decrease.
There could be some (weekend) group fatigue as calendars begin clearing out all of the postponed/rescheduled group occasions. Weekend group restoration began round this time final 12 months, so it’s attainable that weekends are slowing because the calendar normalizes.
Weekend transient demand additionally fell, one other signal pointing to diminished leisure demand. The transient weekday occupancy index dipped marginally month over month.
Prime 25 Markets
Enterprise journey restoration stays firmly plateaued within the Prime 25 Markets.
Restricted enterprise journey is extra seemingly a results of inflation than COVID at this level.
Friday and Saturday occupancy continued to say no, and occupancy indices fell throughout each the Prime 25 and all different markets.
Of the 166 STR-defined U.S. markets, 64, together with six Prime 25 Markets, reported demand above 2019 ranges whereas 93 markets reported demand indices at or higher than the nationwide common.
Florida continues to be well-represented throughout the top-performing markets in addition to secondary and tertiary southern cities. There’s a case to be made for each enterprise and leisure demand coming into the likes of Charleston, Charlotte, Knoxville, Austin, and Savannah.
Regardless of the softer weekend occupancy, summer season vacationers completely hit the Prime 25 Markets in July. Oahu, San Diego (drive-to), Orange County (Disneyland), and Norfolk (drive-to) all posted the best occupancy months. Seattle, Denver, Boston, and New York Metropolis additionally gained occupancy.
Pipeline
Rooms in building proceed to say no month over month and 12 months over 12 months. The whole of rooms in planning is rising, though at a decelerating tempo. Rate of interest progress might trigger rooms within the planning part to fall within the subsequent few months.
Month-to-month P&L
U.S. lodge gross working revenue per obtainable room (GOPPAR) exceeded the pre-pandemic comparable for a fourth consecutive month. Every of the important thing bottom-line metrics, nevertheless, decreased barely from June, whereas whole earnings elevated with peak summer season room demand and revenues. Revenue margins have been stronger than July 2019 for each full- and limited-service resorts, however GOP margins have been at decrease ranges than the earlier fourth months. The dip in margins might be attributed to greater bills related to extra ramped-up operations in addition to the overall rise in prices across the trade.
Newest Weekly Information
The week of 14-20 August confirmed a lower in room demand and occupancy, which is regular for this time of 12 months. Learn extra in our newest Market Restoration Monitor.
About STR
STR offers premium knowledge benchmarking, analytics and market insights for the worldwide hospitality trade. Based in 1985, STR maintains a presence in 15 international locations with a company North American headquarters in Hendersonville, Tennessee, a global headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the main supplier of business actual property data, analytics and on-line marketplaces. For extra data, please go to str.com and costargroup.com.
