U.S. Hotel Industry records 0.8% RevPAR Decline in August 2008

The U.S. hotel industry posted a 0.8% decline in RevPAR for the month of August 2008, according to data from Smith Travel Research (STR). The monthly decrease in RevPAR was precipitated by declining occupancy, while ADR continued to increase.

In year-over-year measurements, the industry's average daily rate increased 2.8% to end the month at $107.01. Industry occupancy fell 3.5% to finish the month at 67.5%. Revenue per available room for the month fell 0.8% to finish at $72.18.

"August industry demand remained soft; down 0.7% despite favorable Labor Day and Democratic National Convention (Denver, CO) activity in the last week of the month," said Brad Garner, VP of client services at STR.

August room revenue increases of over 30% in Denver, 15% in New Orleans, 12% in New York and 10% in San Francisco also worked to improve achieved industry wide RevPAR for the month.

Year-to-date occupancy fell 2.6% to 63.2%. ADR reached $107.41, a 3.8% increase. At $67.89, RevPAR is up 1% for the first seven months of 2008.

Commenting on the year-to-date industry picture, Garner added, "An increase in year-to-date supply of 2.4% contributed to a lackluster posted occupancy of 63.2%, down 2.6% from the previous year. Rate integrity inspired the 1% growth in industry wide RevPAR."

"Most hoteliers and operators, as the data suggest, are putting into practice valuable lessons learned from rampant discounting in the previous downturn," Garner added.

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