It’s official, 2020 was the worst year on record for the hotel industry. For the first time in history, the industry surpassed 1 billion unsold room nights, which eclipsed the 786 million unsold room nights during the Great Recession in 2009. Hotels reported all-time lows in Occupancy, Average Daily Rate (ADR), and Revenue Per Available Room (RevPar) according to year-end 2020 data.
Occupancy: 44.0% (-33.3%)
ADR: US$103.25 (-21.3%)
RevPAR: US$45.48 (-47.5%)
When looking at the broad picture, the top 25 markets showed lower occupancy (42.9%) but higher ADR (US$114.09) than all other markets.
Minneapolis/St. Paul, Minnesota-Wisconsin, reported the lowest occupancy level (33.3%), which represented a 49.9% decline in year-over-year comparisons.
Tampa/St. Petersburg, Florida (50.8%), was the only top 25 market to reach 50% occupancy. The market’s occupancy level was still 29.4% lower than 2019.
Oahu Island, Hawaii, was the only major market to post ADR above US$200, at US$215.57 (-10.5%), even as the market saw the steepest year-over-year occupancy decline (-53.7% to 39.0%).
Norfolk/Virginia Beach, Virginia, came in closest to its 2019 comparable with occupancy of 49.1% (-22.7%) and RevPAR at US$43.93 (-34.7%).
Despite the impact of the worst year in history for the hotel industry, one Florida area became the only top 25 market to reach more than 50% occupancy. Tampa/St. Petersburg is giving hoteliers hope in 2021 that Florida can remain a beacon in the tourism industry and rise above stronger than ever as we navigate the aftermath of COVID-19 and how it reshaped our world.
Contact Gulati Law for one of our hospitality attorneys to help guide you through your future endeavors.
Source: Hotel Management