According to data compiled by STR, the U.S.
hotel industry reported mixed results in the three key performance
metrics for July 2017.
In a year-on-year comparison with July 2016, the
industry reported a -0.5% decline in Occupancy to
73.8%, an increase of 1.4% to US$130.85 in ADR, and a rise in
RevPAR of 0.8% to US$96.62.
“July is historically the peak month for hotel
demand in the country, and for this July, the industry sold more
roomnights than any other month on record,” said Jan Freitag,
STR’s senior VP for lodging insights. “However, supply growth
remaining close to 2% and a further diminishment of pricing
confidence led to the lowest RevPAR growth figure in the U.S.
since our last decrease all the way back in February 2010.”
Among the Top 25 Markets, Detroit, Michigan,
posted the largest year-on-year increase in RevPAR (up 7.4% to
US$72.39), due primarily to the month’s largest rise in ADR (+5.9%
to US$100.68). Occupancy in the market rose 1.5% to 71.9%.
The next highest increases in RevPAR were
reported in Washington, D.C.-Maryland-Virginia (+5.0% to
US$113.49); Miami/Hialeah, Florida (+4.6% to US$128.68); and San
Diego, California (+4.3% to US$178.33).
RevPAR growth in Miami was driven by the month’s
largest increase in occupancy (+3.7% to 80.9%).
Due to a comparison with the month of the 2016
Democratic National Convention, Philadelphia, Pennsylvania-New
Jersey, reported the steepest declines across the three key
performance metrics. Occupancy fell 6.7% to 73.2%, ADR was down
21.5% to US$124.10 and RevPAR dropped 26.8% to US$90.80.
“Group occupancy was down 6.1% nationally, and
Philadelphia and Cleveland had a lot to do with that due to the
national convention comparison,” Freitag said.
No other double-digit decreases were reported
among the major markets.
Chicago, Illinois, reported the second-largest
decreases in ADR (-5.5% to US$142.69) and RevPAR (-9.3% to
Nashville, Tennessee, saw the second-largest
decline in occupancy (-6.0% to 76.4%).
“Year to date, 19 of the Top 25 Markets showed
supply growth at or above the long-term U.S. average (+1.8%),”
Freitag said. “With demand growth not keeping up in a lot of those
markets, we expect occupancy declines to continue. But ADR growth,
although muted, will keep RevPAR positive.”