Wed, 24 April 2019

US Hotel Industry Reports Q1 2019 Increase in ADR, OR and RevPAR

According to data from STR, the U.S. hotel industry reported positive results in the three key performance metrics during Q1 2019.

In a year-on-year comparison with Q1 2018, hotels in the USA posted an 0.4% increase in Occupancy to 61.8%, ADR was up +1.1% to US$129.02 and RevPAR increased by +1.5% to US$79.68.

Demand (+2.4%) outgrew supply (+2.0%) for the quarter, and the absolute values in each of the three key performance metrics were the highest for any Q1 on record. However, year-on-year performance growth came in below projected levels.

Luxurious room at the Four Seasons Hotel San Francisco. Click to enlarge.

Q1 performance came in lower than forecasted as the industry reported its lowest RevPAR percentage change for an opening quarter since 2010, said Bobby Bowers, STRs senior VP of operations. What made the quarter even more underwhelming was the fact that year-over-year results received a lift from the Easter calendar shift as well as significant group performance gains in San Francisco, which is benefitting from an influx of business at the reopened Moscone Center. Overall, San Francisco accounted for 40 basis points of that 1.5% increase in the U.S.

Among the Top 25 Markets, the aforementioned San Francisco/San Mateo, California, posted the largest lift in ADR (+15.9% to US$270.23), which resulted in the largest increase in RevPAR (+15.9% to US$209.51).

Tampa/St. Petersburg, Florida, experienced the highest rise in occupancy (+2.4% to 81.2%).

Super Bowl LIII host, Atlanta, Georgia, registered the second-largest jump in RevPAR (+14.1% to US$88.59), due primarily to the only other double-digit increase in ADR (+12.7% to US$126.19).

Due to comparison with its Super Bowl host year in 2018, Minneapolis/St. Paul, Minnesota-Wisconsin, reported the only double-digit decline in ADR (-15.0% to US$109.04) and the largest drop in RevPAR (-19.0% to US$63.20).

Philadelphia, Pennsylvania-New Jersey, saw the largest decrease in occupancy (-7.8% to 59.8%).

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