Hotel revenues down 39% in February
Rooms sold declined 23%, ODU reports
Virginia hotel revenues for February 2021 declined by 39% compared to February 2020, according to data released Thursday by STR Inc., a CoStar Group division that provides market data on the U.S. hospitality industry.
During the same period, rooms sold declined by 23%. The average daily rate (ADR) paid for hotel rooms dropped 21% to $80.34, while revenue per available room (RevPAR) fell to $34.84, a 39% decline.
“Performance of the hotels in the commonwealth during February 2021 was in general worse than in January 2021,” said Professor Vinod Agarwal of Old Dominion University’s Dragas Center for Economic Analysis and Policy in a statement. “COVID-19 continues to adversely impact this industry. However, with increasing vaccinations and declining COVID-19 infections, we should start seeing a significant improvement in the performance of the hotel industry over the 2020 levels beginning in March 2021.”
Hotel revenues and rooms sold declined in most markets during February 2021, compared with February 2020. Revenues fell 63% in the Northern Virginia market, 24% in Charlottesville and 17% in Hampton Roads. In January, revenues fell 34% in Northern Virginia, 36% in Charlottesville and 11% in Hampton Roads. The number of rooms sold during February 2021 declined by 46% in Northern Virginia, 24% in Charlottesville and 9% in the Hampton Roads market. The Chesapeake and Suffolk market fared better than other areas, with a 0.65% increase in rooms sold.