US Hotel Industry’s OR, RevPAR & ADR Increase in May 2013

According to data compiled by STR, the U.S. hotel industry’s occupancy rose 1.1% to 64.0%, ADR was up 3.6% to US$109.86 while RevPAR increased 4.7% to US$70.34.

“While demand for transient hotel rooms was solid for the month (+4.3%), year-on-year demand growth for group rooms was down (-3.4%) and continued to be a drag on overall industry performance,” said Brad Garner, COO at STR. “Key performance indicators were still positive for the month, firming year-on-year comparisons worked to slow the rate of growth experienced in previous months. The absolute level of ADR for the 12-months ending May reached an all time high of US$108, up more than US$4 from the previous peak in 2009.”

Among the Top 25 Markets, Dallas, Texas, reported the largest occupancy increase, rising 6.4% to 64.5%. Detroit, Michigan, followed with a 6.1% increase to 64.5%. St. Louis, Missouri-Illinois, fell 6.2% in occupancy to 66.2%, reporting the largest decrease in that metric.

Houston, Texas (+12.1% to US$113.42), and Oahu Island, Hawaii (+12.1% to US$196.35), experienced the largest ADR increases for the month.

Two markets reported ADR decreases: Atlanta, Georgia (-3.3% to US$83.57) and Washington, D.C. (-2.9% to US$152.20).

Five markets achieved double-digit RevPAR increases: Houston (+17.4% to US$81.45); Dallas (+14.3% to US$59.68); Detroit (+12.1% to US$54.50); San Francisco/San Mateo, California (+11.4% to US$152.39); and Anaheim-Santa Ana, California (+10.6% to US$89.57). Washington, D.C., fell 6.6% in RevPAR to US$113.36, reporting the largest decrease in that metric.