Labor Day weekend occupancy approaching 20%

It’s hard to believe it’s already August. Our team at myDigitalOffice (MDO) is still working tirelessly to provide the hotel industry with future (and free) market data insights to create a clearer road to recovery. In the United States, some areas of the country are beginning to feel a sense of normalcy with the reopening of schools and sporting events. But, will it last? And what does this mean for the hospitality industry?

According to recent data from the MAPP report, future hotel occupancy growth trends have slowed over the past few weeks, coming off the heels of recent spikes in COVID-19 cases. Looking ahead to Labor Day weekend we noticed the following (note the ‘as-of’ dates):

  • All hotel classes are still seeing occupancies well under 25%
  • Luxury hotels, as expected, still lead in ADR, although they seem to be dropping rates week over week
  • Economy and Midscale hotels continue to drive the most demand

Looking at the entire United States we noticed a few similar trends:

  • Rates continue to drop, albeit slightly, each week for August and September bookings.
  • Short term booking windows remain evident as observed below with current US occupancy rates for August and September.
  • ADR is trending higher in September than August, likely due increased demand over the holiday weekend

Below is another format of this data, grouped by class. Here are a few of the trends that stuck out to our team:

  • While Midscale hotels were dominating occupancy levels for August and September, the Economy class saw a spike in September bookings, as of 8/11 and now leads that category.
  • Luxury hotels’ ADR, for the month of August, has been dropping steadily each week… and the same trend seems to be starting for September over the past two weeks.

To see how your hotels are stacking up to their respective markets with future business on the books data, opt-in your hotels to the MAPP report today via the following link:

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