Richmond-area hotel occupancy levels outpace pre-COVID marks

Hotel occupancy and revenues in the Richmond region continue to outperform pre-pandemic benchmarks, according to a 6-month review of data from STR Inc, a CoStar Group division that tracks hospitality industry analytics.

The latest report shows occupancy in the Richmond Region at nearly 60% in December – up from nearly 52% in December 2019.

Revenue per available room – a metric used in the tourism industry to measure hotel performance – also is up when compared with pre-pandemic levels, the study found. It was $56.38 last December, a $10.79 increase from December 2019.

The data mirrors trends experienced by regional hoteliers during the past six months.

Industry officials consider the data a positive sign for one of the region’s industries hardest hit by the COVID-19 pandemic.

Domestic leisure travel and sports tourism are driving the rebound, according to Richmond Region Tourism, the nonprofit responsible for marketing the region to meeting, convention and sports event planners, tour operators and leisure travelers.

The organization represents the counties of Henrico, Chesterfield, Hanover and New Kent, as well as city of Richmond and Colonial Heights and the town of Ashland.

“The latest data is encouraging and points to the region’s strong tourism assets,” said Jack Berry, president and CEO of Richmond Region Tourism. “While corporate travel remains low locally and across the country, which is impacting weekday sales, the Richmond region is well-positioned for a robust recovery because of ongoing demand in friends and family travel, leisure vacations, sports tournaments and meetings and conventions.”

As the local tourism industry continues to implement safety protocols, enthusiasm for future travel has reached its highest level nationally since the start of the pandemic, according to one research firm. Nearly 80% of Americans have leisure trips currently planned in 2022, according to Destinations International.

Sports tournaments and meetings and conventions bookings by Richmond Region Tourism are off to a strong start, as well: The region will host a total of 23 events in the first quarter, a 26% increased compared to 2021.

“Travelers are eager to experience new places and see family and friends,” said Neil Amin, CEO of Shamin Hotels. “It’s been exciting to welcome visitors back. While we’re optimistic for the future, challenges remain. Many hotel operators and small businesses continue to navigate workforce and supply chain challenges. But the hospitality industry is resilient and we’re working together to ensure a strong recovery.”