by Donald Wood
Last updated: 11:30 AM ET, Tue September 12, 2023
New data suggests the short-term rental market in the United
States was down this summer, declining by almost 17 percent in revenue per
available room (RevPAR).
According to short-term rental data specialist Key Data, RevPAR
in the U.S. fell 14.1 percent to $115, a 16.8 percent drop when adjusted for
inflation. Average daily rate (ADR) dropped 8.1 percent year-over-year,
dropping from $328 to $302 (a real-terms fall of 11 percent.)
Paid occupancy in the U.S. also fell by 6.5 percent,
settling at 38 percent.
“Many property managers in the U.S. were probably
disappointed this summer,” Key Data CEO Jason Sprenkle said. “The rest of the
world saw declines in RevPAR, but the U.S. should see improvement in 2024.”
Similar declines were also reported this summer in Europe
and the United Kingdom, with ADRs in Europe increasing 0.3 percent to $182,
which helped offset an 8.2 percent drop in occupancy. European RevPAR fell eight
percent in real terms to $71.
The United Kingdom saw RevPAR fall six percent to $86, while
occupancy fell 2.4 percent, not helped by ADRs that fell 3.6 percent in real
terms to $213.
Globally, RevPAR was down 9.8 percent to $705 due to a 4.9
percent real-term decline in ADR over June, July and August, while occupancy
also helped to drag revenues down, falling 5.1 percent annually.
“It’s likely that the cost-of-living crisis coupled with an
increase in short term rental supply has hurt revenues this summer,” Sprenkle
continued. “It’s still difficult to tell what the rest of the year holds but,
as it currently stands, we do see lower occupancies globally.”
As for the outlook for the rest of 2023, Key Data revealed
that RevPAR in the U.S. for September through December shows a $20 drop year-over-year,
while occupancy is down by six percentage points over the same period. ADRs are
also expected to rise 0.9 percent.
However, the data also shows that booking windows in the
U.S. have shrunk 11.4 percent year-on-year—from 68 days to 60 days—potentially
leaving room for property managers to make up ground through December.
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