Boston Real Estate for Sale

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If you really want proof that the economy is in bad shape, take a look at the city’s hotels.

(iStock)

(iStock)

The occupancy rate across the U.S. hit 48.9 percent for the week ending Aug. 1, according to hotel data tracker STR. If there is any good news is that the rate has increased for 15 of the last 16 weeks; the streak was interrupted in the week ending July 4 because of a surge in coronavirus cases.

Occupancy rates do not take into account hotels that are closed.

In the Los Angeles/Long Beach market, nearly 50 percent of its hotels were occupied, while New York continued to struggle, with just 36 percent of hotels occupied. Chicago saw 38 percent occupancy and Miami just 33 percent.

All four cities remained more than 40 percent below their occupancy levels from the same time last year. And of those four, only New York’s $59.40 revenue per available room exceeded the national average of $45.97. Miami and Chicago were each around $33.

In the last month, overall hotel occupancy has increased by just three percentage points.

Those numbers may not improve significantly any time soon. Last week, Dr. Deborah Birx, the White House coronavirus task force coordinator, advised that the U.S. was entering a “new phase” of the virus, one in which infections were “extraordinarily widespread” in both rural and urban communities.

Hotels in metro areas remain the hardest hit. Among the top 25 markets, only Norfolk/Virginia Beach, Virginia, cracked 60 percent occupancy. And just three other markets — Detroit, San Diego, and Philadelphia-New Jersey — exceeded 50 percent.

Oahu Island in Hawaii and New Orleans registered the lowest occupancy rates at 21.4 percent and 29.7 percent, respectively.

Freitag added that in the remaining days before the school year begins, he expects travelers may also drive out to wide-open spaces — in addition, beaches — in states like Idaho, Montana, South Dakota, and Wyoming.

Boston Real Estate and the Bottom Line

Here in Boston, hotels are increasing their occupancy by turning hotel rooms into college dorms. As a result, we’re now seeing a high number of Beacon Hill apartments for rent,

 

Boston Condos for Sale

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