This holds up, we are going to see hotel bankruptcies left and right – my sense is that most hotels cannot cover their operating costs (let alone their capital costs) below 55% occupancy:
The U.S. hotel industry posted declines in all three key performance measurements during the week of 15-21 March, according to data from STR.
In year-over-year measurements, the industry’s occupancy fell 4.7 percent to end the week at 58.5 percent. Average daily rate dropped 8.0 percent to finish the week at US$99.92. Revenue per available room for the week decreased 12.3 percent to finish at US$58.45.
Not surprisingly, NY led the pack, with a 36.3% drop in revenue per available room.
