U.S. Hotels Reported Significant Declines During Q1 2020

Affected late in the first quarter by the COVID-19 pandemic, the U.S. hotel industry reported significant declines in the three key performance metrics during Q1 2020, according to data from STR.

In a year-over-year comparison with Q1 2019, the industry posted the following:

• Occupancy: -15.9% to 51.8%
• Average daily rate (ADR): -4.0% to US$123.76
• Revenue per available room (RevPAR): -19.3% to US$64.14

The absolute occupancy level was the lowest for the industry since the time of the global financial crisis in Q1 2009. The year-over-year decline in the metric was the worst for any quarter on record.

Among the Top 25 Markets, San Francisco/San Mateo, California, experienced the steepest drop in occupancy (-24.9% to 58.2%), which resulted in the largest decline in RevPAR (-29.9% to US$146.24).

Due largely to comparison with its Super Bowl host year in 2019, Atlanta, Georgia, posted the only double-digit decrease in ADR (-13.7% to US$108.99).

Significant COVID-19 effects were visible during each week of March.

STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.