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Coronavirus

Has Coronavirus Upended the Hotel Industry’s Main Performance Metric?

Cameron Sperance

Photo Credit: Researchers at CBRE have turned to using occupancy rates over RevPAR as the leading hotel industry performance metric during the coronavirus pandemic.  Flickr / William Cho

Skift Take

An unprecedented downturn calls for a hotel performance metric shakeup, as revenue declines don't show just how deep the coronavirus downturn in travel really is.

Coronavirus has made such a dire impact on the travel industry that the world’s largest real estate services company turned to an alternative method to measure a hotel’s performance. Travel analysts have traditionally tracked how well a specific hotel or market performs through RevPAR, or revenue per available room. But revenue and occupancy levels sank to such historic lows in the first quarter due to coronavirus that many properties have temporarily closed, and the traditional financial model isn’t fully conveying how hotels are performing, said CBRE Hotels Director of Research Information Services Robert Mandelbaum. “The tr

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