(Bloomberg)—Occupancy rates at U.S. hotels fell slightly to 22% in the week ending April 4, as social-distancing measures continued to batter travel companies.
The key industry metric fell below 20% in a majority of the 25 largest markets, according to lodging data firm STR.
With so few hotel guests, more properties are likely to close, according to a research note from SunTrust Robinson Humphrey.
“We assume the next shoe to drop will be further hotel closures where running sub 20% occupancy is unsustainable,” the note said.
Luxury hotels are taking a particularly hard hit as the pandemic shuts down travel. The occupancy rate at those properties was 5.5%, according to STR.
In New York, where owners have offered free or discounted rooms to doctors and nurses, occupancy rates increased to 18%.
To contact the reporter on this story: Patrick Clark in New York at [email protected].
To contact the editor responsible for this story: Craig Giammona at [email protected]
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