April Va. hotel revenues down slightly from pre-pandemic

Lagging NoVa hotel market drives state numbers down

Published May 19, 2022 by Katherine Schulte

Virginia hotel revenues in April were down 3.5% compared with pre-pandemic April 2019 revenues, largely due to the lagging Northern Virginia market, according to data released Wednesday by STR Inc., a division of CoStar Group Inc. that provides market data on the U.S. hospitality industry.

Hotel rooms sold decreased by 4.7% last month, compared with the same period in 2019. The average daily rate (ADR) paid for hotel rooms through April was $108, a 1.3% increase from the April 2019 ADR. Revenue per available room (RevPAR), though, fell to $60, 4% lower than this time in 2019. In April 2021, Virginia’s ADR was $92.72 and RevPAR was $52.42.

Hotel revenues through the first four months of 2022 in the Hampton Roads market were 19% higher than those recorded in 2019. Within Hampton Roads, the Chesapeake/Suffolk submarket saw its revenue increase the most, up 23% compared to 2019. Virginia Beach hotels saw 22% higher revenue, and the Newport News/Hampton submarket saw 15% higher revenue than 2019.

In the Richmond market, total hotel revenue increased 9.4%, and Charlottesville saw a 19.6% jump. The Blacksburg market saw a 26.6% increase in hotel revenue compared with 2019.

Northern Virginia hotel revenue continues to lag behind 2019 levels. Hotel revenue for the region was 28% lower through April, compared with the same period in 2019. The only other market showing a decline in revenue was Roanoke, which was down by 0.8%. The Northern Virginia market is essentially responsible for the overall decline in state revenue numbers, according to a press release from Old Dominion University’s Center for Economic Analysis and Policy. In 2019, it accounted for 43% of the state revenues.

Still, the latest Northern Virginia revenue is encouraging, said Virginia Restaurant, Lodging & Travel Association President Eric Terry . In March, Northern Virginia revenue was 31% lower than in 2019.

“We’re seeing some good signs of recovery up there,” he said. “A lot of the student youth groups are coming in, so it’s been the most positive report that I’ve think I’ve seen for April.”

In addition to school trips to Washington, D.C., some corporate business is returning, he added.

In Northern Virginia, rooms sold decreased by 21% compared with this time in 2019. In Roanoke, rooms sold decreased by 7%. The Newport News/Hampton market and the Bristol, Virginia, market both sold 4% fewer rooms. Virginia Beach market rooms sold were down 2%. The Chesapeake/Suffolk submarket, though, had a 9% increase in rooms sold.

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