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Napa Valley hotels report further drops in revenue, occupancy

Napa Valley hotels report further drops in revenue, occupancy

Napa's Westin Verasa hotel

Napa's Westin Verasa hotel as seen during the county-wide shelter-at-home order and the COVID-19 outbreak. Hotel revenue across the county has plummeted in recent weeks. 

In the span of just a few weeks, Napa County hotel occupancy has plummeted to an unheard of 13 percent.

“The coronavirus continues to have a substantial negative impact on Napa Valley’s tourism industry,” said a news release from Visit Napa Valley.

Visit Napa Valley received preliminary Smith Travel Research (STR) data for the past week, showing hotel occupancy currently averaging at 13 percent during the week of March 15-21.

From March 1 to March 21, STR data for Napa County showed:

  • The average daily rate (ADR) was down 3.3 percent ($266.06 vs $275 in 2019)
  • Year over year hotel occupancy was down 41.8 percent (38.6 percent vs 66.3 percent in 2019)
  • Revenue per available room (RevPar) was down 43.7 percent ($102.65 vs $182.36 in 2019)
  • Total hotel revenue was down 43.6 percent ($10.8 million vs $19.2 million in 2019)

“While we will not know the full economic impact of this for quite some time, we continue to encourage visitors to plan ahead and consider purchasing gift certificates at hotels, restaurants, wineries, and other Napa Valley experiences to be enjoyed once travel restrictions have been lifted,” said Linsey Gallagher, president and CEO of Visit Napa Valley.

“In the meantime, the health and safety of our visitors, employees and our community remains our top priority.”

Nationwide, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of March 15-21, according to STR.

In comparison with the week of March 17-23, 2019, the industry recorded the following:

  • Occupancy: down 56.4% to 30.3%
  • Average daily rate (ADR): down 30.2% to $93.41
  • Revenue per available room (RevPAR): down 69.5% to $28.32

“RevPAR decreases are at unprecedented levels—worse than those seen during 9/11 and the financial crisis,” said Jan Freitag, STR’s senior VP of lodging insights.

“Seven of 10 rooms were empty around the country. That average is staggering on its own, but it’s tougher to process when you consider that occupancy will likely fall further.

With most events cancelled around the nation, group occupancy was down to one percent with a year-over-year RevPAR decline of 96.6%.

The industry is no doubt facing a situation that will take a concerted effort by brands, owners and the government to overcome.”

San Francisco/San Mateo, recorded the worst declines in each of the three key performance metrics: occupancy (-80.7% to 16.6%), ADR (-44.7% to $151.25) and RevPAR (-89.3% to $25.08).

Editor’s note: Because of the health implications of the COVID-19 virus, this article is being made available free to all online readers. If you’d like to join us in supporting the mission of local journalism, please visit napavalleyregister.com/members/join/.

You can reach reporter Jennifer Huffman at 256-2218 or jhuffman@napanews.com

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Business Editor

Jennifer Huffman is the business editor and a general assignment reporter for the Napa Valley Register. I cover a wide variety of topics for the newspaper. I've been with the Register since 2005.

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