Slow Summer Travel Season Leads to Weaker Q3 Hotel Fundamentals

- Overall hotel occupancy fell by 0.8% year-over-year in Q3. This reflected a 0.1% drop in demand and a 0.6% increase in supply.

- A 0.6% increase in average daily rate (ADR) was offset by the decline in occupancy, leading to a 0.2% decrease in revenue per available room (RevPAR).

- Summer political conventions, hurricane displacement-related demand and the Jewish holidays falling in October this year were tailwinds in Q3. Nevertheless, Q3 performance was weaker than expected due to soft leisure travel and the slow return of international visitation.

- While hotel demand fell in Q3, lodging alternatives such as short-term rentals and cruise lines continued to report strong demand, up 24% and 15%, respectively, compared with Q3 2019.