What is the national average hotel occupancy rate?
The occupancy rate of hotels in the United States reached 62.7 percent in 2022. This shows growth over the previous two years which were impacted by the coronavirus (COVID-19) pandemic.
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TROY, Michigan—With average U.S. hotel occupancy on track to reach 63.8 percent in 2023, just shy of the pre-pandemic level of 65.9 percent, business and leisure travelers are packing into hotels throughout North America for a second consecutive year.
Average room rate is a measure of the average rental income of a paid and occupied room during a specific time period. It is a key performance indicator (KPI) in the hotel industry.
What is occupancy rate? Occupancy rate is a key performance indicator of the hospitality industry. It is calculated by the number of occupied rooms divided by the number of available rooms that are available in a hotel.
High Demand for Hotel RoomsThe high demand for hotel rooms plays a big part in why hotels are so expensive right now. When lots of people want to stay in hotels, the hotels become full quickly. This is called high occupancy. With more people wanting to book rooms, hotel owners can charge more money for them.
There will be pent-up demand for travel and leisure activities after the lockdowns are fully lifted. The research group IBISWorld predicts a rebound for the U.S. hotels and motels industry after the pandemic, with steady growth through 2025.
Understanding Revenue Per Available Room (RevPAR)RevPAR is a metric used in the hospitality industry to assess a property's ability to fill its available rooms at an average rate. An increase in a property's RevPAR means that its average room rate or its occupancy rate is improving.