ASIA Travel Tips.com
Wednesday, 22 July 2015

Positive ADR, OR and RevPAR at Hotels in U.S. in June 2015

According to data compiled by STR, hotels in the U.S. reported positive results in the three key performance metrics during June 2015.

 In year-on-year results, occupancy rates at hotels in the U.S. was up 2.1% to 73.1%; ADR rose 5.0% to US$121.57; and RevPAR increased 7.2% to US$88.84.

The number of available U.S. hotel rooms topped 5 million for the first time ever, said Jan Freitag, STRs senior VP of strategic development. June demand (more than 109 million room nights sold) was also the highest for any June, and with supply growth inching up to only 1.1%, the months occupancy was a June record and the highest monthly occupancy this year.

RevPAR in the U.S. has now increased for 64 consecutive months, while ADR has risen year-on-year at 5.0% or higher in three of the first six months of 2015.

Of the Top 25 Markets, 12 reported double-digit RevPAR growth, led by Philadelphia, Pennsylvania-New Jersey (+25.4% to US$115.26). New Orleans, Louisiana (+19.6% to US$100.09), and Seattle, Washington (+18.8% to US$156.24), were the other two markets to post RevPAR increases of more than 15.0%.

Houston, Texas (-1.5% to US$75.03), and Minneapolis/St. Paul, Minnesota-Wisconsin (-0.6% to US$94.17), were the only two Top 25 Markets to report a decrease in RevPAR for June.

Every Top 25 Market reported positive ADR performance for the month. Three of the markets posted double-digit ADR increases: Seattle (+16.3% to US$174.73); Philadelphia (+15.7% to US$143.03); and Boston, Massachusetts (+10.2% to US$205.74).

New York, New York, reported the lowest year-on-year increase in ADR, up 0.8% to US$272.50.

The Top 25 Markets increased ADR on average by 5.8%, Freitag said. Once again, New York City is the odd man out with basically no pricing power at all. Everywhere else, though, it looks like full hotels allowed hoteliers to increase rates, sometimes by double digits.

New Orleans was the only market to experience a double-digit rise in occupancy, up 10.2% to 73.7%.

Minneapolis/St. Paul (-3.6% to 79.1%) and Houston (-3.6% to 71.1%) saw the largest occupancy declines for the month.

Houston continues to underperform with year-to-date RevPAR down 1.7%, driven down by a 3.8% decline in occupancy, Freitag said. As the oil and gas industry tries to stabilize, the hotel industry continues to be a victim to volatility in this market.

STR,

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