The U.S. hotel industry posted declines in all three
key performance measurements during March 2009, according to data from
In year-over-year measurements, occupancy in
March 2009 fell 11.6% to end the month at 55.2% (62.5% in March
2008). The average daily room rate dropped 9.6 % to finish the
month at US$99.42 (US$109.97 in March 2008). RevPAR for the month
decreased 20% to finish at US$54.93 (US$68.69 in March 2008).
"Performance results for March continue to show sharp drops in
the key measures of occupancy and ADR," said Mark Lomanno,
president of STR. "However, we have begun to believe that the
industry may have bottomed out from a demand perspective. Over the
past two months, the number of rooms sold has remained fairly
consistent after the accelerating drops experienced beginning in
September 2008 though January 2009. Knowing that the trough in the
cycle has been reached gives hope that the beginnings of a modest
recovery may not be far away."
During March, none of the
top 25 markets in the U.S. reported increases in any of the three key
performance measurements. In occupancy, only six of the markets
ended the month with single-digit decreases.
reported the largest decrease in occupancy, which was down 17.9%
to 67.2%. Three other markets reported occupancy decreases of
more than 15 %, including Detroit, Michigan (-17.1% to 45%);
New Orleans, Louisiana (-16.8% to 62.9%); and San Diego,
California (-15.6% to 61.9%). The largest decrease in ADR was
reported by New York which experienced a 24.4-% drop to
US$193.19. Miami-Hialeah, Florida (-18.2% to US$170.93) and
Phoenix, Arizona (-15.4% to US$133.23) also reported large
decreases in ADR. Six markets reported RevPAR decreases of more
than 25 %: New York (-35.5% to US$135.99); Miami-Hialeah (-28.5%
to US$126.80); Orlando (-27.9% to US$71.28); Detroit (-25.4% to
US$35.08); San Diego (-25.4% to US$76.49); and Chicago, Illinois
(-25.1% to US$55.24).
For the first quarter of 2009, the
U.S. hotel industry experienced declines in all three key
performance metrics when compared to first quarter 2008. Occupancy
was down 10.9% to 51.4% (57.7% in 2008). ADR decreased 7.7 % to
US$100.13 (US$108.46 in 2008). RevPAR dropped 17.7%, ending the
quarter at US$51.44 (US$62.54 in 2008).
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