SPOKANE, WA—Magnuson Hotels outperformed the U.S. hotel market in the second quarter by nearly three times in RevPAR trends, according to its Q2 key performance indicators report.
- For June 2020, Magnuson Hotels sustained a chainwide 22% reduction in RevPAR against 2019, vs. a 60.6% drop for the U.S. hotel market year to date (YTD).
- For 2020 YTD, Magnuson withstood a RevPAR drop of only 17.8% year-over-year against U.S. .industry-wide fall of 46.7%. YTD.
- Average room rates in June held higher for Magnuson with a 7.5% reduction against 2019, compared to a U.S. industry average rate fall of 31.5% YTD.
- Despite the challenges of COVID-19 across the U.S., occupancies for Magnuson held above market at a 13.5% reduction in June, compared to a 43% industry fall for the U.S.
The company noted that because its portfolio is widely dispersed across U.S. secondary, tertiary, rural and highway markets, many areas have been less impacted than primary markets dependent upon leisure, corporate and international.
Magnuson stated that its midscale business segment moved to a 100% focus on serving essential services workers across secondary tertiary, rural and highways markets in the U.S. Customer groups staying in Magnuson Hotels include blue collar, construction, transportation, truckers, medical, government and student housing. Exterior-corridor properties are performing strongly as guests can drive up to their rooms, eliminating interaction with other guests, using elevators or passing through lobbies.
“Our teams and systems are working nonstop to assist hotel owners, their families and employees in successfully navigating through this challenging operating environment,” said company CEO Thomas Magnuson. “Magnuson Hotels is in a full building mode of investment in technology, distribution, marketing and new business segments to support our affiliates.”