NORFOLK, Va. (WAVY) -Old Dominion University’s Dragas Center for Economic Analysis says the hotel industry in Hampton Roads continues to achieve the highest occupancy rate among the top 25 markets in the nation since the week of May 31 to June 6.
The data from the ODU Dragas Center for Economic Analysis is updated every Wednesday to show the statistics from the hotel industry in Hampton Roads amid the coronavirus pandemic.
ODU economists said hotel revenues decreased by 50% and rooms sold declined by 30% in Virginia for the week of Oct. 18-24 when compared to the same period in 2019.
The Average Daily Rate, or ADR, paid for hotel rooms dropped 29% to $86.81.
In addition, the data showed the Revenue Per Available Room, or RevPAR, an industry standard of the health of the lodging sector, fell to $44.36, – a 50% decline.
Looking at the last four weeks, the occupancy rate in Hampton Roads was 54.1% for the current week and 53.9% since the week of Sept. 27-Oct. 3.
The economists said the hotel industry in Hampton Roads has also seen the smallest declines in both occupancy and RevPAR among the top 25 markets since the week of Sept. 6-12.
ODU’s Dragas Center for Economic Analysis and Policy said hotel rooms sold during the latest week fell by 52% in the Virginia portion of the Washington market, 16% in the Charlottesville market, and 19% in the Hampton Roads market.
According to research, the Chesapeake and Suffolk market combined had less of a decline than other submarkets submarkets in Hampton Roads by having rooms sold decreased by 9.15%.
Within the Hampton Roads market, hotel revenue fell by 56% in Williamsburg, 37% in Newport News/Hampton, 33% in Norfolk/Portsmouth, 16% in Chesapeake/Suffolk, and 11% in Virginia Beach.
Rooms sold fell by 50% in Williamsburg, 16% in Newport News/Hampton, 15% in Norfolk/Portsmouth, and 9.21% in Virginia Beach.
Over the last four weeks, ODU said the Williamsburg market has continued to perform the worst.
Occupancy has declined by 44%, ADR by 15%, and RevPAR by 53%.
Williamsburg also led in declining room revenues and rooms sold; these were down by 55% and 47%.
“Performance of the hotels in the commonwealth during this week was in general slightly worse than last week,” said Professor Vinod Agarwal of the Dragas Center.
The occupancy rate of hotels in Hampton Roads for the past four weeks when compared with the same period in 2019 declined by 18%, ADR by 12%, and RevPAR by 28%.
“COVID-19 continues to have adverse impacts on this industry,” said Agarwal.
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