By Ian Sherr

CHICAGO (Reuters) – U.S. hotel occupancy rates likely fell for a 19th straight month in May, industry data suggests, a sign that hotels are struggling amid the economic recession.

A preliminary analysis of the five weekly reporting periods in May already released by Smith Travel Research found hotel occupancy averaged 55.6 percent. The average weekly decline was 11.9 percent from a year earlier.

Numbers for the final day of May won’t be available until next week, but STR confirmed that May would show another monthly decline.

The current recession, the longest since the early 1980s, has eaten into hotel revenue and forced them to drop rates.

“What you have is a lack of business travelers because corporate America has cut back on travel quite a bit, and lack of leisure travelers because they are worried about their future,” said Jeff Higley, vice president of Digital Media and Communications for STR.

Average daily rates also dropped an average of 9.4 percent year over year to an average $97.33 during the period. And revenue per available room also dropped an average of 20.2 percent year over year to an average of $54.16 during the period.

In a research note, FBR Capital Markets said that during the week ending May 30 — which included Memorial Day Weekend — luxury hotels were hardest hit with weekday revenue per available room down 27.1 percent and weekend revenue per available room down 22.1 percent.

By comparison, midscale hotels that don’t serve food did better — with revenue per available room down 17.3 and weekend revenue per room down 14.4 percent.

But FBR analyst Patrick Scholes said, since the end of Easter, occupancy numbers have actually risen, raising with it the revenue per available room.

“It’s getting slightly less worse each subsequent week,” he said. (Reporting by Ian Sherr; Editing by Derek Caney)

(By Ian Sherr. Originally published June 5, 2009 on the wire at Reuters News, here)