According to data compiled by STR, the U.S.
hotel industry posted increases in all three key performance
measurements during March 2011.
In year-on-year measurements, the industry's
occupancy was up 6.1% to 61.4%, the ADR ended the month with a
3.8% increase to reach US$101.72 while RevPAR for the month rose
10.1% to finish at US$62.47.
"The U.S. hotel industry recorded another demand
increase during March 2011, which, when combined with room revenue
and RevPAR increases of more than 10%, signals an ongoing
recovery," said Amanda Hite, STR's president. "As in prior months,
the highest ADR increases were recorded at the luxury end of the
spectrum. Luxury segment RevPAR growth was almost equally made up
of ADR and occupancy growth, sending a strong signal to
lower-rated chain scales that pricing power is returning."
"Supply growth remained muted as only 1% of new rooms were added
to the U.S. inventory. The Upscale and Upper Midscale segment
rooms still grew at a rate of 3.0% and 3.6%, respectively,
indicating development activity for these hotels has not been
curtailed by lack of funding," Ms. Hite added. "Hoteliers in the
Top 25 Markets continue to register strong ADR growth, with San
Francisco (+12%), Oahu (+9%), New Orleans (+8.9%) and Chicago
(+7%) recording the largest increases. New York
hotels, which had reported strong demand growth throughout the
year, recorded a 4.1% decrease in occupancy while rates
Among the Top 25 Markets, four markets
achieved double-digit occupancy increases: Detroit, Michigan
(+13.4% to 56.7%); Tampa-St. Petersburg, Florida (+11.2% to
81.1%); Dallas, Texas (+10.7% to 61.5%); and New Orleans,
Louisiana (+10.5% to 78.7%). Two markets reported occupancy
decreases: New York, New York (-4.1% to 78.2%), and Washington,
D.C. (-1.5% to 70.6%).
San Francisco/San Mateo, California,
was the only top market to experience a double-digit ADR increase,
rising 12% to US$142.49. Atlanta, Georgia, fell 3.7% in ADR to
US$84.37, reporting the largest decrease in that metric, followed
by Norfolk-Virginia Beach, Virginia, with a 3.3% decrease
New Orleans jumped 20.4% in RevPAR to
US$110.13, reporting the largest increase in that metric. Six
other markets experienced RevPAR increases of more than 15%: San
Francisco/San Mateo (+17.5% to US$105.62); Chicago, Illinois
(+16.4% to US$63.60); Dallas, Texas (+16.1% to US$52.98); Orlando,
Florida (+16.1% to US$83.54); Tampa-St. Petersburg (+15.8% to
US$91.63); and Detroit (+15.5% to US$42.73). None of the Top 25
Markets experienced RevPAR decreases.
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