National Park Hotels See Demand Slowdown during US Government Shutdown

Data compiled by STR Analytics highlights the effects of the 16-day U.S. government shutdown on hotels near the U.S. national parks.

STR Analytics examined eight areas that were impacted by the 1-16 October 2013 shutdown, including the U.S. National Park service and two central cities, Washington, D.C., and Philadelphia, Pennsylvania.

All eight parks - including the Grand Canyon, Yellowstone National Park, Zion National Park, Gettysburg National Military Park, Yosemite National Park, Cuyahoga Valley National Park, Glacier National Park and Great Smoky Mountains National Park - saw year-over-year decreases in demand during the shutdown. The Grand Canyon experienced the greatest decrease in demand, falling 35.0 percent.

For the 16-day government shutdown, year-over-year occupancy declined in all 10 locations examined. More than half of the locations experienced year-over-year average-daily-rate increases. The data for hotels surrounding Yellowstone showed the greatest contrast: 34.1-percent decline in occupancy and 14.8-percent growth in ADR.

Some areas, such as areas surrounding the Cuyahoga Valley and Smoky Mountains, only saw ADR increases of approximately 1.0 percent, but were able to hold a stable rate. Hotels surrounding the Grand Canyon were not as successful at maintaining rate or occupancy, as they saw a 35.0-percent decline in occupancy and a 3.3-percent decline in ADR.

Demand within Philadelphia and Washington, D.C., central business districts had grown 2.2 percent year-to-date September 2013. During the shutdown, however, demand declined 1.1 percent and 9.2 percent, respectively. On 14 October, hotels in Washington, D.C., saw a decrease of 14 percent in room demand compared to the same day in 2012.