U.S. Hotel Industry on Track for Record Year; RevPAR Increases for 63rd Consecutive Month

According to data from STR, hotels in the U.S.A. reported positive results in the three key performance metrics during May 2015.

In year-on-year results, occupancy was up 0.8% to 67.5%; ADR rose 5.0% to US$120.64; and RevPAR increased 5.9% to US$81.43.

“May 2015 broke the occupancy record for the month, and demand broke an unprecedented 104 million room nights,” said Jan Freitag, STR’s senior VP of strategic development. “Annualized occupancy is still at 65.0%, so all indicators are again at record levels on an annual basis.”

RevPAR in the U.S. has now increased for 63 consecutive months.

Among the Top 25 Markets, Denver, Colorado, reported the largest increases in each of the three key performance metrics. Occupancy in the market increased 6.1% to 80.6%; ADR was up 15.0% to US$123.86; and RevPAR rose 22.0% to US$99.86.

Six additional markets reported double-digit RevPAR growth, led by Nashville, Tennessee (+17.4% to US$100.34), and Seattle, Washington (+13.2% to US$111.66).

In addition to Denver, three Top 25 Markets posted a double-digit ADR increase: New Orleans, Louisiana (+12.5% to US$162.09); Nashville (+11.5% to US$128.42); and Chicago, Illinois (+11.4% to US$163.53).

“The largest markets had a great start to the summer with occupancy over 76.0% and ADR US$30.00 higher than the U.S. average,” Freitag said. “RevPAR growth (+6.5%) was again leading all other markets (+5.4%) and was driven by ADR growth (+5.2%).”

Houston, Texas, reported the largest decreases in the three key performance measurements. Occupancy in Houston dipped 6.0% to 71.4%; ADR was down 2.5% to US$121.40; and RevPAR decreased 8.3% to US$86.67.

New York, New York, was the only other market to show decreases in each of the three key performance metrics. Occupancy in the market dipped 1.2% to 89.4%; ADR was down 0.9% to US$281.05; and RevPAR dropped 2.2% to US$251.38.