U.S. occupancy lowest for any week since late June
U.S. weekly hotel occupancy was the lowest for any week since late June, according to the latest data from STR through October 31.
October 25-31 (percentage change from comparable week in 2019):
Occupancy: 44.4% (-29.0%)
ADR: US$91.56 (-27.4%)
RevPAR: US$40.70 (-48.4%)
With rising COVID-19 case numbers and less leisure travel, the U.S. saw a second consecutive week with fewer hotel guests. During October 25-31, room demand fell 1.3 million from the prior week, leading to the country’s lowest occupancy level (44.4%) since the week of June 14-20.
Aggregate data for the top 25 markets showed lower occupancy (41.0%) but higher ADR (US$96.91) than all other markets. Only two of those major markets reached or surpassed 50% occupancy: Atlanta, Georgia (53.0%), and New Orleans, Louisiana (52.9%). Norfolk/Virginia Beach, Virginia, dropped below the 50% occupancy level for the first week since May 31 through June 6. Markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (23.8%), and Minneapolis/St. Paul, Minnesota-Wisconsin (30.7%).
Expedia Q3 earnings down, but better than expected
Expedia Group has reported third quarter earnings that were better than analysts expected, reflecting an uptick in summer travel before COVID-19 cases began surging again, and the benefits of cost cuts earlier this year. Revenue fell 58% to US$1.5 billion — the third consecutive quarterly contraction — for the three months ended September 30, the Seattle-based online travel giant said. Analysts had projected US$1.39 billion, according to data compiled by Bloomberg. Gross bookings were US$8.6 billion, down 68% compared with a year earlier but an improvement from the previous quarter’s 90% drop.
Lockdown will ‘decimate’ UK hospitality, hotelier says
The UK’s hospitality industry will be “decimated” by the second lockdown just as it was beginning to dust off the damage of the first, according to Adrian Ellis, the manager of Manchester’s 5-star Lowry Hotel and the chair of the Manchester Hoteliers’ Association, who believes the industry won’t begin to bounce back until spring 2021. Now he is calling on the government to extend its furlough plan beyond December.
European hotel trends outlook
Global international tourist arrivals for Europe in 2020 are expected to decline by 70% compared to 2019 levels, according to the UNWTO and new research from Savills. However, the staggered reopening of hospitality sectors across Europe through the summer months coupled with pent-up demand to travel has kickstarted recovery for a number of locations. In Q3 2020, European average occupancy rates grew to 38.6%, representing a marked improvement off the back of the historic lows of 15.3% recorded in Q2 2020. Regions with less stringent lockdowns or earlier lifting of restrictions have enjoyed slightly more robust operational recovery.
Asia-based independents change course
Dramatic changes are happening to new hotel development projects across southeast Asia due to the COVID-19 slowdown, with global and regional chains rapidly shifting their attention to conversion opportunities and a management-light approach. From a market size assessment, the stakes are high, according to STR, with over 80% of their reporting 8,757 international standard hotels in Southeast Asia classified as independent. The recent Soft Brand Hotels Review research by hospitality consulting group C9 Hotelworks further notes that the top three countries in the region with the highest number of independent hotels are Vietnam, Indonesia and the Philippines.
