NORFOLK, Va. (WAVY) – Old Dominion University’s Dragas Center for Economic Analysis released new data Wednesday reflecting that 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.
In addition, ODU economists say the newly released data show that hotel revenues decreased by 50%, and rooms sold declined by 31% in Virginia for the week of Oct. 11-17 when compared to the same period in 2019.
The Average Daily Rate, or ADR, paid for hotel rooms dropped 27% to $87.75.
Data also show the Revenue Per Available Room (RevPAR), an industry-standard of health in the lodging sector, fell to $44.39 — a 49% decline.
Looking at the last four weeks, the occupancy rate in Hampton Roads was 53.7% for the current week and 54.2% since the week of Sept. 20-26.
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.
In a press release, ODU’s Dragas Center for Economic Analysis and Policy said rooms sold during the latest week fell by 51% in the Virginia portion of the Washington market, 15% in the Charlottesville market, and 18% in the Hampton Roads market.
The Chesapeake and Suffolk area combined had less of a decline than other submarkets in Hampton Roads by having rooms sold decreased by 7.1%.
Within the Hampton Roads market, hotel revenue fell by 54% in Williamsburg, 29% in Norfolk/Portsmouth, 28% in Newport News/Hampton, 15% in Virginia Beach, and 12% in Chesapeake/Suffolk.
Rooms sold fell by 47% in Williamsburg, 16% in Newport News/Hampton, 12% in Norfolk/Portsmouth, and 11% in Virginia Beach.
Over the last four weeks, ODU said the Williamsburg market has continued to perform the worst.
Occupancy has declined by 42%, ADR by 14%, and RevPAR by 50%. Williamsburg also led in declining room revenues and rooms sold; these were down by 50% and 42%, respectively.
“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. “COVID-19 continues to have adverse impacts on this industry.”
The occupancy rate of hotels in Hampton Roads for the past four weeks when compared with the same period in 2019 declined by 16%, ADR by 11%, and RevPAR by 25%.
STR is a global firm that provides insights into the hospitality industry.