Another soft week for U.S. hotel industry

Travel buyers get good news during negotiation season

By Susan Avery -- Purchasing, 8/21/2008 9:23:00 AM

Corporate travel buyers: The U.S. hotel industry posted declines in the key performance measurements of occupancy and revenue per available room (RevPAR) during the week of August 10-16, according to new data from STR in Hendersonville, Tenn.

Corporate travel buyers are in the midst of preparing for negotiations with hotel properties for 2009, as buyers generally negotiate with hotels in the fall for the coming year.

In year-over-year measurements, the industry’s occupancy fell 4.5% to end the week at 68.7%, STR reports. Average daily rate increased 3% to finish the week at $107.18. RevPAR for the week decreased 1.7% to finish at $73.65.

“The U.S. lodging industry experienced another soft week, as occupancy declined 4.5,” said Bobby Bowers, senior vice president of operations at STR. “Through the first half of August, preliminary numbers indicate that demand (room nights sold) is down, room revenue growth is slowing and supply growth continues.”

Year-over-year occupancy change by day ranged from 4.8% to down 4.1%. ADR growth ranged from 2.4%-3.6%.

In 2008, hotel room rates globally rose 4% to 22% year over year, with increases varying by geography and type of hotel.

See also: Travel procurement has role in corporate strategy as companies expand globally