U.S. hotel per-room revenue drops 18 percent
| • | Chart: How hotels are faring |
Advertiser Staff and News Services
Revenue per available room at U.S. hotels fell 18 percent in October from a year earlier as fear of flying hurt high-priced hotels in markets such as New York and Hawai'i, according to Smith Travel Research.
The decline in revenue per room, a measure of average occupancy and room rate, was biggest at upper-upscale hotels such as Marriotts and Sheratons at 26 percent, the Hendersonville, Tenn., research company said. Midscale hotels such as Fairfield Inn and Comfort Inns fared the best with a decline of 6.8 percent. Those hotels are less dependent on air travel.
In September revenue per room fell 23 percent, Smith Travel said. Hotels this year are suffering the worst drop in demand in 34 years because of the terrorist attacks, according to PricewaterhouseCoopers.
Hotels in New York and other places that get most of their travelers from air travel posted occupancy declines of more than 20 percent. On O'ahu, revenue per room fell 35 percent, and in New York it fell 41 percent, Smith Travel said.
Average hotel occupancy for all U.S. hotels fell 11 percent to 59.5 percent, while room rate fell 7.7 percent to $82.23.
Earlier this week, hospitality consulting firm PKF-Hawai'i said statewide hotel occupancy in October dropped 23.5 percent from the same month last year, to 58.99 percent. The drop marked the ninth consecutive month of decreases.
Year to date, PKF said statewide hotel occupancy is at 73.8 percent, a drop of 6.8 percent from the same time last year.
All Hawaiian islands posted decreases in occupancy; O'ahu (6 percent decrease), the Big Island (7.4 percent decrease), Maui (6.3 percent decrease), Kaua'i (9.5 percent decrease), and Moloka'i (3 percent decrease).
