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Thu, 22 December 2016

U.S. Hotels Report November 2016 Increase in ADR, OR and RevPAR

According to data compiled by STR, the U.S. hotel industry reported positive year-on-year results in the three key performance metrics for November 2016.

Compared with November 2015, occupancy increased 2.5% to 60.7%, ADR rose 3.4% to US$119.71 and RevPAR grew 5.9% to US$72.68.

The 60.7% occupancy level was the highest for any November in STRs database, and the RevPAR increase was the largest for the industry since October 2015.

Sheraton Virgina Beach

November results were definitely stronger than expected, but the month will likely end up as an outlier, said Brad Garner, STRs senior VP for client relationships. Part of the performance can be attributed to a calendar shift. This month included a Tuesday and Wednesday in comparison with a Sunday and Monday in 2015. Performance on those days in 2016 was quite a bit higher, which is to be expected as Sunday is historically the lowest performing day of the week. Moving forward, we still expect supply growth to outweigh demand growth, leaving ADR as the primary driver of RevPAR. That equation likely adds up to a performance growth slowdown for the industrysimilar to what we have seen in previous months.

Among the Top 25 Markets, Norfolk/Virginia Beach, Virginia, recorded the only double-digit increase in occupancy (+11.0% to 53.3%  and the largest increase in RevPAR (+14.0% to US$43.17). ADR in the market was up 2.6% to US$81.00.

 Three additional markets reported double-digit growth in RevPAR for the month: Chicago, Illinois (+12.9% to US$107.24); Los Angeles/Long Beach, California (+12.6% to US$124.32); and Nashville, Tennessee (+11.0% to US$94.85).

Los Angeles/Long Beach posted the largest rise in ADR (+7.8% to US$164.67).

Houston, Texas, reported the steepest declines across the three key metrics. Occupancy in the market dropped 9.5% to 58.0%, ADR was down 6.1% to US$99.54 and RevPAR decreased 15.0% to US$57.69.

Miami/Hialeah, Florida, experienced the months second largest decrease in RevPAR (-9.9% to US$128.15).

The Top 25 Markets (RevPAR +5.4%) didnt perform as well as other markets (RevPAR +6.1%), mostly due to greater occupancy gains in those other markets, Garner said. That is to be expected due to group business shifts to markets outside of the Top 25 and to more new supply entering the larger markets.

See other recent news regarding: STR, ADR, RevPAR.

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