According to data from STR, the U.S. hotel
industry reported positive results in the three key performance
metrics during August 2018.
In a year-on-year comparison with August
2017, the industry posted an 1.2% increase in Occupancy to 71.4%,
ADR grew by 2.3% to US$130.71 and RevPAR jumped 3.5% to US$93.37.
“The industry once again set a monthly demand
record and achieved its highest August occupancy level since
2014,” said Jan Freitag, STR’s senior VP of lodging insights.
“Those numbers indicate a strong finish to the summer with a
decent mix from both the leisure and business sectors. ADR growth
was up a bit from July but still below the long-term average.
Pricing power remains a key topic around the industry as
inflation-adjusted ADR has been mostly flat.”
have now posted 102 consecutive months of year-on-year RevPAR
growth. STR’s latest forecast
calls for continued growth in the metric through 2019.
Orleans, Louisiana, reported the only double-digit increase in
occupancy (+12.7% to 60.2%) and the largest jump in RevPAR (+15.8%
Chicago, Illinois, posted the highest lift
in ADR (+6.6% to US$152.98).
Pennsylvania-New Jersey, experienced the second-largest rise in
occupancy (+5.4% to 75.5%) and the third-largest increase in
RevPAR (+9.4% to US$95.78).
Overall, 24 of the Top 25
Markets reported RevPAR growth.
Dallas, Texas, registered
the only decline in RevPAR (-3.4% to US$66.11), due to the largest
drop in occupancy (-5.6% to 64.9%).
Florida, saw the second-steepest decrease in occupancy (-2.8% to
None of the Top 25 Markets reported a decline in
“RevPAR growth in the major markets was 4%, well
above the 3% growth rate seen in all other markets,” Freitag
noted. “Even with supply growth significantly higher in the Top 25
Markets, high demand drove occupancy levels and gave hoteliers the
confidence to push their rates a bit. Several markets saw weekly
comparisons fall around the days that matched with last year’s
Great American Eclipse, but overall there weren’t too many
performance fluctuations. That will change with September numbers
due to the hurricane situations of this year and last.”