Las Vegas strip revenue falls 39%
Casino revenue on the Las Vegas Strip fell 39% to US$330.1 million in July from a year ago, the first full month properties were open after the coronavirus shutdown, indicating the city is struggling to win back customers. The Las Vegas numbers underscore the difficulties faced by economies dependent on air travel, with consumers still reluctant to venture far beyond their homes for entertainment. Nevada casinos began reopening June 4, with restraints on capacity. Some properties still remain closed.
A three-week low for U.S. occupancy
U.S. hotel occupancy fell to a three-week low during the period of August 16-22, according to the latest data from STR.
August 16-22 (percentage change from comparable week in 2019):
Occupancy: 48.8% (-30.3%)
ADR: US$100.08 (-22.7%)
RevPAR: US$48.81 (-46.1%)
The prior week, the industry had reached 50% occupancy for the first time since mid-March. Lower occupancy came as U.S. room demand declined week over week for the first time since mid-April. Reflective of school openings and less vacation travel, the industry sold 492,000 fewer room nights than the previous week, which represented a decrease of 2.7%. STR projects similar challenges with no corporate demand to replace leisure demand lost to the beginning of the school year.
Aggregate data for the top 25 markets showed lower occupancy (41.8%) and ADR (US$99.11) than all other markets. Norfolk/Virginia Beach, Virginia, was the only one of those major markets to reach a 60% occupancy level (61.2%). Three additional markets reached or surpassed 50% occupancy: San Diego, California (54.1%); Los Angeles/Long Beach, California (54.0%); and Detroit, Michigan (50.3%). Markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (26.5%), and Orlando, Florida (29.3%).
Survey: Recent travelers more likely to travel again
A recent survey from PwC indicates that most consumers are still wary of travel, but those who have traveled recently report a substantial increase in confidence. Among respondents who have traveled since May, 58% expect to book additional air travel within three months (compared to 46% in an April survey), while 74% expect to stay at a brand-name hotel (compared to 57% in April). In contrast, survey respondents who have not traveled since May said they were less likely to travel in three months, with only 26% anticipating air travel and 38% expecting to stay in a brand-name hotel.
Inbound capital to U.S. drops 34% in H1
Inbound capital to the U.S. fell 34% in H1 2020, as COVID-19-related market uncertainty weighed on investment activity, according to CBRE’s U.S. Inbound & Outbound Investment Trends report. Volume by EMEA-based investors — by far the leading source of inbound capital — was down by 48% year-over-year. U.S. capital outflows remained essentially unchanged from H1 2019, although 80% was deployed in Q1.
NYU hospitality conference moves online
The annual NYU International Hospitality Industry Investment Conference in New York has been cancelled and replaced by a webinar series. Rather than risk the health and the well-being of panelists, attendees, organizers, the committee responsible for the event opted to produce a series of online webinars that will take place the week of November 9. Attendance will be free of charge to members of the hospitality and tourism industries, as well as to members of the press.