Study: Hotel industry in Hampton Roads sees improvement in 2021

Business
Virginia Beach Oceanfront Giant Beach Ball generic

NORFOLK, Va. (WAVY) — A recent study claims that the hotel industry in Virginia and in Hampton Roads is starting to recover amid the COVID-19 pandemic.

Old Dominion University’s Dragas Center examined the latest metrics from STR, a global firm that provides insights into the hospitality industry, and found that hotel revenues and rooms sold increased in 2021.

Hotel revenues and rooms sold increased by 223% and 141% in Virginia for April 2021 when compared to April 2020. However, the data did not do well compared to 2019 with revenues and rooms sold were 36% and 19% below the levels seen in April of that year.

The Average Daily Rate (ADR) paid for hotel rooms in April 2021 stood at $92.72, a 34% increase from April 2020 but a decline of 20% compared to April 2019.

Likewise, Revenue Per Available Room (RevPAR), an industry-standard of the health of the lodging sector, rose to $52.42, but it was 36% lower compared to its April 2019 level. Hotel revenues in April 2021 increased by more than 150% in every major metropolitan area of the commonwealth compared to April 2020, the early days of the pandemic.

Revenues increased 296%  in the Hampton Roads market. During March 2021, revenues had fallen 62% in that same market.

Rooms sold during the latest month increased by 134% in the Hampton Roads market. Williamsburg fared better than other submarkets in Hampton Roads with rooms sold increased by 520%.   

Within the Hampton Roads market, hotel revenue increased in March by:

  • 1,355% in Williamsburg 
  • 446% in Virginia Beach
  • 220% in Norfolk/Portsmouth
  • 142% in Chesapeake/Suffolk and
  • 134% in Newport News/Hampton

Rooms sold increased by:

  • 179% in Virginia Beach
  • 126% in Norfolk/Portsmouth
  • 81% in Chesapeake/Suffolk
  • 73% in Newport News/Hampton

Professor Vinod Agarwal of the Dragas Center said he expects the industry to continue its recovery each month through the end of 2021.

“With increasing vaccinations, declining COVID-19 infections, rising consumer confidence, and easing restrictions, we have seen significant improvement in the performance of the hotel industry over the 2020 levels.”

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories

WAVY Twitter Widget

***Don’t Miss Module Removal CSS***

WAVY Facebook