CBRE: U.S. Q3 RevPAR Declines 54.4% Year-Over-Year

NATIONAL REPORT—According to CBRE’s Q3 2020 U.S. Hotel Figures report, RevPAR fell by 54.4% in the third quarter of this year vs. the same period in 2019, as COVID-19 cases rose across the country. However, it was a lesser decrease than the second quarter.

Other key findings were:

  • Demand for hotel rooms was down by 36.8% year-over-year (YOY) nationally in Q3 2020. Supply increased by 1.8%.
  • Total U.S. employment increased by 0.5% in September, mirroring the slow recovery in hotel performance.
  • National hotel occupancy decreased by 37.9% YOY.
  • ADR fell by 26.6% YOY in Q3.
  • Luxury hotels continued to record the biggest declines in occupancy. Economy and midscale hotels had the smallest drops in ADR and achieved the highest occupancy levels of any chain scale.
  • The number of closed hotel rooms declined in Q3. Luxury hotels had the largest percentage decline in rooms closed, but their reopening rate is beginning to flatten out and may indicate potential permanent closures.
  • San Bernardino, CA (-17.4%) had the smallest RevPAR decline YOY. Virginia Beach, VA (-29.6%) and Tucson, AZ (-35.9%) also had relatively smaller RevPAR losses compared with other markets. No markets had RevPAR growth in Q3.
  • New York had the largest RevPAR drop (-87.9%), followed by Boston (-85.0%) and San Francisco (-84.1%).
  • Hotel investment volume increased by 163% quarter-over-quarter in Q3 to $2.1 billion, although this was off a relatively low base. Some uncertainty from the onset of the pandemic was resolved in Q3 and some forced sales due to distress likely took place. YOY investment volume in Q3 was down by 81%, less than the 89.3% YOY drop in Q2.

Leave a Reply

Your email address will not be published.