It might not be a surprise to hear that the pandemic has effectively shutdown the hospitality market, but now that we were seven months into the pandemic and the travel shutdown, the impact is clear. Since March, occupancy rates have plummeted and ADR declined in step, according to a mid-year report from Integra Realty Resources. In addition, transaction volumes fell dramatically, mimicking the lowest points of transaction volumes in the previous recession.

Occupancy rates began to fall almost immediately in late February following the mandated shutdown of travel and businesses. In March, US hotel occupancy rates fell to 39%, a 63% decreases compared to March 2019, according to the report. March was only the beginning. Occupancy rates have continued to decline in April to 24%; however, occupancy began to increase again in May and June, rising to 33% and 46% respectively.

In addition, ADR has decreased in step with occupancy, but at a slower pace. ADR decreased 16% compared to 2019 in March and another 56% in April to $73.31. However, like occupancy, rates increased in May and June to $95.37. Still, rates are significantly lower compared to 2019. In June 2019, when rates were $134.10, according to the report. Of course, the combination of declining ADR and occupancy meant a sharp decrease in RevPAR. Like ADR and occupancy, RevPAR rates bottomed out in April before beginning to increase again in May and June when RevPAR hit $44.03. By comparison, June 2019 had a $98.14 RevPAR rate.