New data from STR shows nationwide occupancy was below 5% in the same week in 2019
As the Big Apple put its holiday charms into action, visitors flocked to the city, pushing New York City to the nation’s highest occupancy rate (81%) for the week ending December 11. This is the first time in 85 weeks that New York has dominated the country in occupancy, according to hotel industry analysts STR.
The market recorded the highest weekday occupancy rate in the country (79%) and the second highest on weekends (89%). Average daily rates also hit a pandemic high, rising 11% from the previous week to $ 337, the third highest level in the country behind Maui and the Florida Keys.
However, occupancy and ADR remained below the levels seen in the comparable week of 2019.
In the United States, 43% of STR metrics across 166 markets saw weekly occupancy rates above same-week levels in 2019, with most of the remaining markets falling below 10% of their 2019 numbers. Total occupancy rate nationwide reached 57%, an average of about 5% lower than in 2019.
The occupancy rate of STR’s top 25 markets peaked in four weeks at 62%. Weekday occupancy in the top 25 markets peaked in 18 weeks at 59%, with weekend occupancy exceeding 70%.
In November, the STR forecast saw the hospitality industry on track to return to 2019 levels a year earlier than originally expected. Even with the rise of the omicron COVID-19 variant, the rebound still appears to be on solid ground, although the new virus strain has again introduced headwinds for any recovery.
“There is still a lot of uncertainty and growing fear due to the emergence of the omicron variant,” STR commented in a blog post. “But it’s wonderful to report a continued recovery, especially in the top 25 markets. The next two weeks should see stronger than usual performance for this time of year. “
The post then predicted a slower period as individuals and businesses adapt and respond to the new COVID variant.