TOT revenue for January 2022 was $329,768, reflecting a decrease of $18,223 or 5.2% compared to January 2020 collections (2022 far exceeded 2021, but we were still in the middle of COVID, so numbers are skewed). With only five months remaining in the fiscal year 2021/2022, the current TOT collections represent 113% of the budget at $5,935,013.
The trend of lower occupancy rates and higher room rates has continued into 2022. The concern is that Townwide, the occupancy was 29%, which is lower than only two months in the fiscal year 2020/2021 (Dec and Feb). Be sure to dive into the occupancy numbers for the large hotels (50 or more rooms/total of 369 rooms). For January, smaller hotels had a 55% occupancy versus large hotels at 24%. That’s significant compared to small hotels (under 50 rooms/total of 62 rooms). The report is attached at the end of the article for deeper review. You can also view past 2021 TOT reports on the Town website.
Of course, the average daily rate (ADR) is through the roof, with the average Townwide at $683 ($420 in January 2020). Small hotels adjusted rates to a still record-breaking $385, and large hotels were at $789. The interesting angle here is that the small hotels had a rate of $665 in December, and the large hotels had a rate of $748 in December. So the small hotel’s adjusted rates significantly while the large hotels appeared to hold tight.
Travel is changing again. Travelers have more options. Will the international travelers flock back to Yountville? Will all the local traffic head overseas and south to the warm destinations? Can the hotels continue to charge the highest rates on record while restaurants and shops remain closed? Business meetings?
Our largest hotel has a new owner and management.
These reports do lag, and I have recently seen plenty of people walking our streets. I can’t wait to see February numbers.
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