Occupancy fell 7.3% to 64.2% and the revenue per available room fell 7.1% to close at $69.76. The average daily room rate stayed fairly steady at a .1% increase to $108.61.
Brad Garner, VP of Operations and Client Services for STR stated in the release that “Airport locations led the rate of decline in occupancy and RevPAR—down 10.0 percent and 11.0 percent, respectively, and while capacity issues have been front and center recently, the lack of business travel into airport locations seems a bit more troubling as the fourth quarter unfolds and into 2009.”
The airport property decline is consistent with what we’ve been seeing on the airline capacity and frequency fronts, so this confirms that the hotel sector will not be immune to the cuts. Across the board results however seem to be between 4 and 6% lower than the capacity cuts themselves.
We can only hope that after the election, the media hype about the economy will subsid somewhat (please tell me that it will…..) and that then consumers and corporations will not be as fearful about spending, particularly on travel.
I am always curious as to how much of a recession in this media saturated world is stimulated by the fear that they engender. I’m ready for a new topic. How about you?