USA Hotel Market Trends in the Covid Era

USA Hotel Market Trends Report

Fueled by leisure travel, week-over-week U.S. hotel occupancy trended upward for 13 consecutive weeks – from a record-low of 21% the week ended April 11 to a high of 50% for the week ended August 15.

However, as school vacations ended, U.S. hotel occupancy again declined to 48.2% for the two weeks ended August 29. Sustained economic recovery is unlikely until Covid-19 has been successfully contained, and absent an effective vaccine, few expect corporate, group or international demand to increase sufficiently to offset the slight-but-downward trending changes in leisure demand.

Key performance indicator (KPI) forecasts for 2020 and 2021:

• Occupancy: 39.8% and 52.0%¹
• ADR: $103.71 and $109.56¹
• RevPAR: $41.31 and $56.95¹

¹ Source: STR and Tourism Economics, STR Press Release 13 August 2020