The very first week of 2022 (2-8 January) was somewhat typical for a very first week in January.
NB: This is an article from STR
U.S. hotel market tenancy dipped to 45.4%, which was 8 portion points lower than what it was in the equivalent week of 2019 however eight portion points higher than a year earlier. In STRs 23 years of daily performance measurement, this most recent weeks tenancy was among the least expensive for the equivalent time period– much better than what was seen in 2000 and 2011 however worse than most all of the early 2000s.
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The Top 25 Markets fared somewhat better than the remainder of the nation with weekly tenancy of 47%, however the Top 25 index to 2019 was much weaker (78) and at a 10-week low. No Top 25 Market reported weekly tenancy above the level seen in 2019, and occupancy ranged from 66% in Miami to 33% in Chicago. 7 markets saw hotels occupancy listed below 40% in the week, consisting of Washington DC, Boston, San Francisco, and Minneapolis. Occupancy was even lower amongst the 17 submarkets classified as main service districts (CBDs) where tenancy was 35% for the week. Four CBDs had occupancy above 50% (Dallas, Los Angeles, Miami, and Tampa) with Dallas leading the group at 56%. The St. Louis CBD saw the least expensive tenancy of the group (23%) and was the 5th most affordable of any submarket, simply ahead of Niagara Falls (22%). The most affordable tenancy submarket for the week was Branson, MO (12%).
Airport hotels revealed the greatest weekly tenancy (55%), which could be the result of continuing cancellations by airlines due to staffing scarcities and weather-related concerns, but in 2019, airport areas likewise led the nation in occupancy. Resort hotels followed next at 48%. Not surprising, the least expensive weekly tenancy remained in Urban hotels (38%) where more than a 3rd of hotels reported tenancy under 30% for the week.
Broad view
The U.K. saw its tenancy drop to 39%. Major cities likewise saw a week-over-week decline, especially Newcastle, Manchester, Edinburgh, Glasgow, Birmingham, and London, all down more than 20% versus last week.
Morocco will continue to suffer from Moroccos National Office of Airports choice to suspend all traveler flights to and from the country up until 31 January 31 2022. Occupancy for the recently sat at 12%, down 63% from the previous week.
The greatest occupancy for this week was posted in 2018 at 56.8%, with the next greatest at in 2007 (54%). The week was kept back by weekday occupancy (43%), which was the most affordable given that mid-February 2021. Weekend occupancy was far better (51%) and fairly strong with an index to 2019 of 94 (3 percentage points behind 2019s tenancy).
Earnings per offered room (RevPAR) dropped considerably week on week and the index to 2019 (81) was up to its lowest level of the past 31 weeks while staying in STRs “recovery” classification (RevPAR indexed to 2019 between 80 and 100). A week back, almost all markets reported “peak” RevPAR (RevPAR indexed to 2019 above 100). Today, just 36% of markets saw RevPAR in the “peak” category, the lowest portion of the previous 31 weeks. Weekend RevPAR improved with the index to 2019 at 103, among the most affordable seen in some time however not the worst. On a 28-day moving total basis, RevPAR stayed above 2019 with an index of 105, down from 108 a week ago, with 83% of markets at “peak” RevPAR.
. At 41%, tenancy beyond the U.S. was at its most affordable level because early June 2021, however the index to 2019 was not that far off from what has actually been seen over the past several weeks. ADR fell week on week, however the index to 2019 increased for a 2nd straight week.
Deltas December need was about 70% of December 2019s load. In contrast, the U.S. hotel market saw December demand at 99% of 2019s level. This weeks demand, which traditionally is among the most affordable, was 88% of 2019.
Market-level tenancy differed from a high of 79% in the Florida Keys to a low of 28% in rural Maryland (Maryland Area). Fifteen markets had tenancy of 60%, consisting of nine in Florida. Overall, 35 of the 166 STR-defined U.S. markets reported greater occupancy than in the very same week of 2019, the tiniest variety of markets to do so in the past 10 weeks. For the overall U.S., tenancy indexed to 2019 was 85, which was the most affordable considering that the end of May 2021. Nearly one quarter of all U.S. hotels reported tenancy under 30% for the week, which was more than a week earlier.
Canadas occupancy dropped to 30%, its lowest level because mid-2021. Germany once again had the lowest occupancy of the leading 10 at 25% and Indonesia was at the top at 49%.
As expected, typical day-to-day rate (ADR) fell from the record-high seen in the previous week to a level that was 95% of what it was in 2019, the most affordable 2019 index since June 2021. In the previous eight weeks, 88% of all markets had ADR above 2019 levels.
Outside of the U.S
Country-level tenancies varied from 82% in the Maldives to 12% in Morocco. After lagging the rest of Europe 2 weeks earlier, Russia relocated to among the top occupancies (65%) around the world with a 40% week-on-week boost. The nations absolute level 80% ahead of the 2019 comparable. At a market-level, Saint Petersburg, Russia Provincial, and Moscow all saw double-digit development versus recently and 2019.
Collectively, worldwide markets saw little change in performance with the number in “recession” (RevPAR indexed to 2019 between 50 and 80) or “depression” (RevPAR indexed to 2019 under 50) unchanged (64%) from the previous week and like what had actually been seen most of in 2015.
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The greatest tenancy for this week was published in 2018 at 56.8%, with the next highest at in 2007 (54%). No Top 25 Market reported weekly occupancy above the level seen in 2019, and tenancy ranged from 66% in Miami to 33% in Chicago. The St. Louis CBD saw the most affordable tenancy of the group (23%) and was the 5th lowest of any submarket, simply ahead of Niagara Falls (22%). Not unexpected, the most affordable weekly tenancy was in Urban hotels (38%) where more than a third of hotels reported occupancy under 30% for the week.
Germany once again had the least expensive occupancy of the top 10 at 25% and Indonesia was at the top at 49%.
