Hotel Industry
Another ghastly week for hotel industry
Last week was another ghastly one for the hotel industry, researchers said Thursday, with occupancy and revenue again down substantially compared with a year earlier.
Some cities were hurt less than others, with Washington hotels only slightly worse off than last year while New York was the hardest hit among major markets, according to Smith Travel Research Inc.
Hotels located along highways suffered less than all other types of properties, such as resorts and upscale urban inns.
The hospitality industry measures success by calculating revenue per available room -- RevPAR, they call it -- by multiplying the occupancy rate of a hotel by the average daily room rate. By that measure, revenue for the week ending Aug. 8 was down 16.5% from a year earlier nationwide. That was a tiny bit worse than the 15.5% drop reported the week before.
Luxury hotels are hurting the most, though their suffering is getting "less bad," Smith Travel said. RevPAR at those hotels was down 24.5% compared with declines of as much as 30% that took place during the second quarter.
In Los Angeles County, average revenue was down 21% from a year earlier while Orange County saw a 17% decline. Tourist mecca San Francisco was off 14.5%. Washington was down only 4.2%, but New York recorded a 29.4% drop.
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