In a Difficult Period for Hotels, Q2 Ends with Signs of Improvement

  • COVID-19’s full impact on the hotel industry took hold in April with a 70% year-over-year drop in demand before rebounding slightly to close Q2 down by 60%. Supply growth fell to 1.3% from 1.5% in Q1.
  • Leisure & hospitality employment fell by nearly half in April before rebounding strongly in June.
  • Overall occupancy decreased by 60.1% year-over-year.
  • ADR fell by 37.4% year-over-year in Q2, while RevPAR fell by an unprecedented 75.0%.
  • Among the chain scales, luxury hotels had the biggest decreases in occupancy and ADR, while economy and midscale hotels had the smallest.
  • Hotel closures peaked in May, with luxury hotels showing the biggest percentage of reopening by the quarter’s close in June.
  • San Bernardino (-53.4%) had the smallest year-over-year drop in Q2 RevPAR, followed by Jacksonville (-62.5%) and Memphis (-63.4%). No markets had RevPAR growth in Q2.
  • Five markets had RevPAR declines of more than 90%: Hawaii, Boston, San Francisco, Washington, D.C. and Orlando.