Oct 22 2008
September Drops in RevPAR and Occupancy
The US Hotel industry has posted year-over year declines in both RevPAR and Room Occupancy rates for September 2008, according to reports form STR.
Occupancy in September fell 5.9 percent to 60.6 percent, compared to 2007′s 64.5 percent. RevPAR for the month was down as well, decling 3.1% to $65.08 from September 2007′s $67.13.
Some markets still performed well, including New Orleans with a +20.2 percent revPAR, Denver with a +12.3 percent revPAR, New York with +8.4 percent revPAR and Dallas with +6.4 percent revPAR.
The stalwart San Francisco market also reported gains of +8.4 percent in revPAR for the month.
Overall, however, the industry faced a very difficult third quarter in 2008, with revPAR growth moving into negative territoy for the first time since the second quarter of 1993.
“We expect a continued difficult operating environment in the final quarter of 2008. Room supply growth will continue while demand growth (roomnights sold) likely will remain soft in many markets, driven by slowing economic growth.”
- Bobby Bowers, STR Senior Vice President of Operations
