STR: September U.S. Hotel Metrics Dip Again Despite Group Bump


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The U.S. hotel industry reported lower key performance metrics in September compared with August, despite a strong showing in group demand beginning mid-month, according to STR. This was the second month in a row U.S hotel performance slowed after regular month-over-month increases since at least January.

Compared with September 2019, September 2021 occupancy was 61.2 percent, down 8.2 percent. Average daily rate was up 1 percent to $133.11. Revenue per available room declined 7.3 percent to $82.04.

Group demand for the week ending Sept. 18 eclipsed 1 million booked room nights for the first time since early in the pandemic, according to STR, and rose to 1.3 million the following week. At the same time, group average daily rate moved past $200 for the first time since February 2020.

Still, those bumps in weekly demand weren’t enough to raise the monthly performance averages past August levels. Group demand increased occupancy, but also “created a lowering effect on average daily rates, as group rooms for upper-tier classes are typically priced lower than transient rooms,” according to STR.

In the top 25 markets, none saw occupancy increase above 2019 levels. Denver reported the highest occupancy at 71.4 percent and was the only market above the 70 percent occupancy mark. San Diego was the next-strongest market at 67.1 percent. Orlando reported the lowest occupancy for the month at 49.2 percent, followed by Minneapolis at 50.5 percent. 

RELATED: STR: U.S. Hotel Recovery Slows in August

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