Sat, 23 April 2016

Hotels in U.S. Report Q1 2016 Increase in ADR and RevPAR

According to data compiled by STR, the U.S. hotel industry reported mostly positive results in the three key performance metrics for Q1 2016.

When compared with Q1 2015, the U.S. hotel industrys occupancy dipped 0.5% to 60.7%. However, ADR rose 3.2% to US$120.92, and RevPAR increased 2.7% to US$73.34.

Industry supply (+1.5%) outpaced demand (+1.0%) for the first time in a quarter since Q4 2009.

Even though this was the first quarterly occupancy decline we have recorded since the fourth quarter of 2009, the absolute level was the second-highest on record for a first quartersecond to only Q1 2015 (61.0%), said Bobby Bowers, STRs senior VP for operations. Several factors contributed to the industrys slow first-quarter performance, including difficult to match comparisons, the Easter calendar shift from April 2015 to March 2016 and harsh weather conditions in some areas of the country.

Three of the Top 25 Markets reported double-digit growth in RevPAR: Los Angeles/Long Beach, California (+16.6% to US$138.58); San Francisco/San Mateo, California (+15.7% to US$189.62); and Norfolk/Virginia Beach, Virginia (+11.2% to US$36.09).

Overall, 16 of the Top 25 Markets experienced a lift in RevPAR for the quarter.

Houston, Texas, saw the largest RevPAR decline, down 9.5% to US$72.26.

The 2.7% year-on-year increase in RevPar was the lowest for the U.S. in 24 consecutive quarters.

Two markets posted a double-digit rise in ADR: San Francisco/San Mateo (+13.0% to US$235.57) and Los Angeles/Long Beach (+11.3% to US$169.92).

Of the seven markets to report a drop in ADR, New York, New York (-3.1% to US$202.07), reported the largest decrease in the metric.

Norfolk/Virginia Beach (+6.2% to 47.6%) experienced the largest increase in occupancy, while Houston (-8.2% to 65.8%) saw the largest occupancy decline.

Oahu Island, Hawaii (84.2%) posted the highest absolute occupancy level for the quarter followed by Miami/Hialeah, Florida (83.2%).

Overall, 15 of the Top 25 Markets experienced flat or declining occupancy.

See other recent news regarding: STR, ADR, RevPAR

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