Feb. statewide hotel revenues were 6.1% lower than 2019
Hampton Roads outperforms other markets with 18% increase
February hotel revenues in Virginia were 6.1% lower than those recorded in February 2019, according to data released Monday by STR Inc., a division of CoStar Group Inc. that provides market data on the U.S. hospitality industry.
Hotel rooms sold decreased by 5% last month, compared with 2019 levels. The average daily rate (ADR) paid for hotel rooms decreased 1% from 2019 to $96, but revenue per available room (RevPAR) fell to $42, a 7% decrease from February 2019.
In February 2021, Virginia’s RevPAR was $34.84, and the ADR $80.34.
Hotel revenues in Hampton Roads were 18% higher last month than February 2019 levels. Virginia Beach had the largest increase, with revenues up 25%, and the Chesapeake/Suffolk submarket followed with a 24% increase. Newport News/Hampton had a 7% increase in revenue.
For Northern Virginia, hotel revenue was 33% lower than in February 2019. The Northern Virginia market is essentially responsible for the 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.
The only other markets to see declining revenues were Roanoke, down by 5.9%, and Bristol, Virginia, down 1.1%. The Richmond market saw a 6.9% increase in revenue, and Charlottesville revenues were up 18.6%, which might be partly because of basketball season, said Dragas Deputy Director Vinod Agarwal.
In Northern Virginia, the number of rooms sold last month decreased by 24% compared to the number sold in 2019. The Bristol, Virginia, market saw an 11% decrease, and the Roanoke and Newport News/Hampton markets sold 8% fewer rooms.
Rooms sold increased by 3% in Richmond, 10% in Charlottesville and 12% in the Chesapeake/Suffolk submarket.