Lodging Tax Revenue Report
August 2021
From the 4.25% lodging tax collections that Visit GJ received (short-term rental lodging tax revenue is collected quarterly), August 2021’s business was a factor of 43.6% higher compared to August 2020 (adjusted for late and missing payments). For a more accurate comparison, August 2021's business was 2.8% higher than August 2019's business (pre-pandemic). Of the Grand Junction lodging properties that reported their metrics to STR, LLC., occupancy for August 2021 was 71.8%, ADR was $110.15, and RevPAR was $79.10.
Grand Junction experienced a decrease in all hotel metrics over the previous month of July. August 2021’s business experienced a factor of a 13.2% decrease in occupancy, a 4.5% decrease in ADR, and an 18.2% decrease in RevPAR over July 2021’s business. It is typical for the occupancy rate to be lower in August as school begins. Compared nationally, Grand Junction once again outperformed U.S. hotels in average occupancy for August by 13.6%. However, Grand Junction trailed the U.S. in ADR by 24.9% and RevPAR by 9.8%. Compared to the state, Grand Junction outperformed Colorado hotels in average occupancy for August by 1.4% but trailed significantly in ADR and RevPAR by 49.3% and 47.2%, respectively.
Great job, lodging properties, in holding rates for the month of August! The strong occupancy numbers combined with higher rates through August 2021 have improved Grand Junction's RevPAR by 6.4% compared to the same year-to-date period in 2019. While this is positive, there is still a large gap between Grand Junction's RevPAR and Colorado and U.S. RevPAR. The predictable travel behaviors of the past are no longer reliable for ongoing revenue management strategies. While it is tempting to keep rates low to grab early hotel bookers, it defeats the goal of maximizing RevPAR. Data has shown a new pattern of last-minute bookings in 2021, which is expected to continue the holiday season. This, coupled with increased traveler spending post-pandemic, demonstrates that hotels can adjust their traditional revenue strategies and continue to raise rates to finish 2021 strong. According to the latest blog by Adara, "If people are too used to low prices, it could disrupt the entire market negatively. Creating some barrier to entry this holiday could be a good bridge to more normal travel marketing strategies being reinstated next year." Be sure to check out the rest of the blog for additional reasons why it makes sense for hotels to increase rates now. In addition, the added revenue you gain by yielding rates can be used to support renovations or wages for your staff - an ongoing challenge in this difficult employment environment.
Click here for the latest sales, use, and lodging tax collection reports from the City of Grand Junction.
*Source: STR, LLC. - REPUBLICATION OR OTHER RE-USE OF STR’s DATA WITHOUT THE EXPRESS WRITTEN PERMISSION OF STR IS STRICTLY PROHIBITED.
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