U.S. occupancy hits 50% for the first time in months
U.S. weekly hotel occupancy has hit 50% for the first time since mid-March, according to the latest data from STR.
August 9-15 (percentage change from comparable week in 2019):
Occupancy: 50.2% (-30.0%)
ADR: US$101.41 (-23.0%)
RevPAR: US$50.87 (-46.1%)
U.S. occupancy has risen week over week for 17 of the past 18 weeks, although growth in demand (room nights sold) has slowed. The week ended 14 March was the last with occupancy of at least 50%. Aggregate data for the top 25 markets showed lower occupancy (42.2%) and ADR (US$99.29) than all other markets.
Norfolk/Virginia Beach, Virginia, was the only one of those major markets to reach a 60% occupancy level (65.3%). Four additional markets reached or surpassed 50% occupancy: Philadelphia, Pennsylvania-New Jersey (52.7%); San Diego, California (51.8%); Detroit, Michigan (51.5%); and Los Angeles/Long Beach, California (50.8%). Markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (22.8%), and Orlando, Florida (29.9%).
Airbnb’s global party ban
Airbnb has announced a global ban on all parties and events at Airbnb listings, including a cap on occupancy at 16. This party ban applies to all future bookings on Airbnb and it will remain in effect indefinitely until further notice. Details of the ban include:
- Parties are now prohibited on all future bookings
- Occupancy at Airbnb listings will be capped at 16 people. This is primarily relevant to larger homes that we previously allowed to list as able to accommodate 16-plus people
- Airbnb is scoping a potential exception process for specialty and traditional hospitality venues (i.e., boutique hotels)
- Guests will be informed about Airbnb’s party rules and that they may be legally pursued by Airbnb if they violate the policy
Millennium lays off 159 employees in Singapore
London-based Millennium Hotels and Resorts has laid off 159 Singapore-based employees as the economic fallout of COVID-19 hits the tourism and hospitality industry hard. The company owns six hotels in Singapore: Copthorne King’s Hotel, Grand Copthorne Waterfront Hotel, Orchard Hotel, M Hotel, M Social and Studio M Hotel. Between January and mid-August, Millennium reduced its foreign employee population in Singapore from 520 to 329, or a reduction of 37%.
Brand loyalty in flux for U.S. travelers
A new U.S. traveler-oriented consumer survey from PwC highlights evolving expectations, attitudes and behaviors around travel. Anxiety remains, but there is opportunity ahead looking towards holiday travel. Highlights include:
- After the first trip, confidence increases — 50% said they were not concerned with air travel or hotel stays after experiencing the first trip. For those travelers, price was also now a more important consideration given their comfort with health and safety protocols
- Brand loyalty is in flux, as more than 37% are likely to switch preferred airlines and 41% hotels. Almost 40% are undecided, making them prime candidates for targeted offers
- 80% of respondents rely on communications from travel providers to make their decisions about when and where to travel and what they’ve received isn’t sufficient