Hotel occupancy rates plummeting

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4/1/20 Update: 

The national occupancy rate for the week of March 22 was 22.6%, making it the worst week for hotels since the outbreak began.

According to data and analytics group STR, 2020 will be the worst year on record for hotel occupancy, which comes as no surprise.

New models show that the country will be peaking in deaths in the next couple of weeks and that many other states will peak at the end of April or beginning of May. 

So it is entirely possible for these hotel occupancy rates to continue to plummet until the curve is flattened for the country as a whole and for the majority of states.

Some vacation hotspots like Oahu Island in Hawaii are already at incredibly low levels like 10% and it won’t surprise me to see the occupancy rates across the country to dip close to 10% to 15% once we hit the national peak and virtually every state is on some form of lockdown.

H/T

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3/25/20 Original article:

New data reveals some pretty depressing statistics for the hotel industry.

According to data and analytics group STR, the new data shows that nearly 70% of hotels in the US last week were vacant.

This comes as no surprise given how the hotel industry has already stated that occupancy rates are worse than 9/11 and the financial crisis combined. 

Compared to the same week last year at the national occupancy rate declined 56%.

But the impact has not been felt equally around the US. Certain spots that have had more of an outbreak and with higher population densities have experienced the worst declines. Both San Francisco and New York had only a 17% occupancy which represents an 80% decrease from this time last year.

Many hotels have decided to close down temporarily or they have gone down to a skeleton crews to retain operations. Many hotel companies have also put employees on furlough. Hopefully with the new stimulus package coming very soon, some hotels can get back on their feet but these occupancy rates are just brutal.

H/T

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