According to data compiled by STR, the U.S.
hotel industry reported positive year-on-year results in the three
key performance metrics during the first quarter of 2017.
with Q1 2016, occupancy rose by 0.9% to 61.1%, ADR increased 2.5%
to US$124.27 and RevPAR jumped +3.4% to US$75.92.
“This was the strongest first quarter on record
in each of the performance metrics, but it is important to note
that results were boosted by a favorable Easter calendar shift
(March 2016 to April 2017) as well as the Presidential
Inauguration and Women’s March in January,” said Bobby Bowers,
STR’s senior VP of operations. “Supply growth for the quarter was
1.9%, which was the highest for any quarter since Q2 2010. So as
demand growth becomes more moderate, occupancy will decline,
placing further pressure on pricing power. At any rate, muted ADR
growth will continue to push modest RevPAR growth for the
Among the Top 25 Markets, Washington,
D.C.-Maryland-Virginia, saw the quarter’s only double-digit
increase in RevPAR (+16.1% to US$107.93). Growth was driven
primarily by the only double-digit lift in ADR (+13.6% to
US$165.94). Occupancy growth in the market was more moderate
(+2.2% to 65.0%).
Other top RevPAR increases were reported in
Detroit, Michigan (+9.8% to US$63.20); Seattle, Washington (+9.2%
to US$96.62); and New Orleans, Louisiana (+8.0% to US$118.90).
Top occupancy growth was reported in
Norfolk/Virginia Beach, Virginia (+6.2% to 50.9%); Seattle (+5.4%
to 71.4%) and Detroit (+5.4% to 62.3%).
Miami/Hialeah, Florida, experienced the steepest
decline in RevPAR (-8.5% to US$186.36) thanks to the largest drop
in ADR (-7.5% to US$227.37). Miami’s absolute value for RevPAR was
still the highest among Top 25 Markets.
“Demand (rooms sold) was up in Miami, but supply
was almost 5% higher than the first quarter of last year, placing
obvious pressure on occupancy and ADR,” Bowers said.
Even while hosting Super Bowl LI, Houston,
Texas, saw the quarter’s largest decrease in occupancy (-3.2% to
See other recent