According to data compiled by STR, the U.S.
hotel industry reported mostly positive results in the three key
performance metrics for the third quarter of 2016.
Compared with Q3 2015, the U.S. hotel industry’s
occupancy was flat at 71.1%, while ADR rose 3.4% to US$127.19, and RevPAR
grew 3.3% to US$90.48.
The flat occupancy performance came as industry
supply (+1.6%) and demand (+1.6%) grew at the same pace.
“This was the slowest third quarter for RevPAR
growth since 2009, but RevPAR did hit an all-time high in absolute
value,” said Bobby Bowers, STR’s senior VP for operations.
“Year-to-date supply growth is at 1.5%, which is the highest
through the first nine months of a year since 2010. And even
though we are still selling a record number of rooms, this slowing
performance will be the new normal as rate is now the sole driver
of RevPAR growth.”
Among the Top 25 Markets,
Philadelphia-Pennsylvania-New Jersey, posted the largest rise in
occupancy (+5.9% to 76.8%) as well as the only double-digit
increases in ADR (+12.6% to US$143.26) and RevPAR (+19.2% to
“Philadelphia saw a big boost from the DNC
(Democratic National Convention) in July, and the impact from the
event spilled over into August,” Bowers said. “Year to date,
Philadelphia has one of the higher RevPAR growth figures among the
Top 25 Markets.”
The next highest RevPAR increases for Q3 were
reported in Phoenix, Arizona (+9.4% to US$52.40); Los Angeles/Long
Beach, California (+9.3% to US$156.73); and Nashville, Tennessee
(+8.0% to US$104.13). Overall, 20 of the Top 25 Markets saw
year-on-year RevPAR growth for the quarter.
Houston, Texas, reported the steepest declines
across the three key performance metrics. Occupancy in the market
fell 10.3% to 60.2%; ADR was down 5.8% to US$98.54; and RevPAR
dropped 15.6% to US$59.36.
“Houston’s problems with oversupply and
diminishing demand as a result of the oil crisis have been
well-documented,” Bowers said. “Unfortunately, it is going to take
a few years for that market to recover.”
No other Top 25 Market reported a double-digit
decrease in any of the three metrics.
In absolute values, New York, New York, recorded
the highest levels in each of the three metrics: occupancy
(89.5%), ADR (US$265.25) and RevPAR (US$237.46).
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