STR Reports US Hotel Performance for Q2 2013

According to data from STR, the U.S. hotel industry reported increases in all three key performance metrics during the second quarter of 2013 in year-on-year measurements.

Occupancy rates increased 1.3% to 65.9%, ADR rose 3.6% to US$110.47 and RevPAR was up 5.0% to US$72.78.

“The U.S. lodging industry has now posted RevPAR growth in thirteen consecutive quarters,” said Bobby Bowers, senior VP of operations at STR. “Second quarter RevPAR increased 5%, driven primarily by ADR, while occupancy hit 65.9% - the industry’s highest absolute second quarter occupancy rate since 2007. First half RevPAR increased 5.6%, reflecting stronger first quarter performance. STR’s current forecast expects full year 2013 RevPAR growth to be at or near the level experienced in the first half.”

Among the Top 25 Markets, Minneapolis-St. Paul, Minnesota-Wisconsin, reported the largest occupancy increase, rising 6.1% to 71.5%. Houston, Texas, followed with a 4.9% increase to 71.8%. Norfolk-Virginia Beach, Virginia, posted the largest occupancy decrease, falling 5.1% to 59.7%.

Oahu Island jumped 13.9% in ADR to US$201.34, achieving the largest increase in that metric. San Francisco/San Mateo, California, followed with a 10.3% increase in ADR to US$183.05. None of the top markets reported ADR decreases during the quarter.

Four markets achieved double-digit RevPAR increases: San Francisco/San Mateo (+15.0% to US$159.30); Oahu Island (+14.2% to US$165.04); Houston (+12.5% to US$75.11); and Minneapolis-St. Paul (+10.0% to US$73.50). Norfolk-Virginia Beach (-3.2% to US$54.94) and Washington, D.C. (-2.1% to US$117.29), reported the only RevPAR decreases.