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Luxury and Economy Chain Scale Demand Outperforms Total US in September

  • Kalibri Labs
  • 11.04.19
Kalibri Labs’ U.S. Hotel Industry Performance Overview reveals luxury and economy chain scale hotels reported the best growth in occupancy for the month of September 2019, both up over 5% year-over-year. Other chain scale segments reported flat or declining occupancy performance for the month resulting in the total US occupancy growing a nominal +1%

The month of September also uncovered interesting results for two prominent markets. Hotels in both New York and San Francisco reported declining Guest Paid ADR, when compared to the same period last year.  This is especially surprising given these markets had the highest occupancy of the top 10 markets (92% for NYC | 87% for SF). September findings also revealed that bookings in New York and San Francisco also experienced the longest booking lead time (both cities ~5 weeks), which historically has been an indicator of pricing power.
Upon evaluation of Channel/Source of Business performance on a YTD basis, the Voice channel is now just over 7% of all room night bookings. This minimal amount of room night bookings through call centers is a continuation of its decline over the past several years.
“When looking at September YTD performance by property size, occupancy varies greatly,” says Mark Lomanno, Partner & Senior Advisor at Kalibri Labs. “Generally, larger properties continue to report higher occupancies than their smaller counterparts.” The YTD performance illustrates that hotels with over 140 rooms actualize average occupancies above 70% while hotels with fewer than 60 rooms actualize an average occupancy of 55%.
The full details of the U.S. Hotel Industry Performance Overview are available at KalibriLabs.com. Kalibri Labs now offers a complimentary Market Kalibration newsletter that provides a summary of U.S. hotel performance trends. Visit kalibrilabs.com/trends to download the latest edition.

Kalibri Labs evaluates and predicts revenue performance using its proprietary algorithm to generate the Optimal Business Mix for individual hotels, revealing the most promising opportunities to pursue along with specific direction on how to find and convert them. The Hummingbird PXM revenue strategy and benchmarking platform also includes the industry’s most robust profiles for travel agent and OTA production. The Kalibri Labs database, updated monthly, is comprised of ADR, room revenue, room nights and acquisition costs from over 7 billion guest stays adding 100 million each month from over 33,000 hotels dating back more than 5 years to give an expansive view of the U.S. hotel industry. Real estate developers, brokers and others involved in hotel transactions use Kalibri Labs data to improve underwriting with a more granular view of each market and benchmarks and trendlines for both individual hotels and sub-markets for all U.S. metro areas.

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