Smith Travel Research reports Second Quarter and First Half 2008 Results from U.S. Lodging Industry

According to the latest statistics from Smith Travel Research, occupancy in the U.S. lodging industry reached 65% in the three months ending June 2008, down 2.5% versus second quarter 2007. Second quarter average room rates gained 3.8% to $107.31 and revenue per available room (REVPAR) - the combination of occupancy and average room rate and a key industry productivity measure - increased 1.2% to $69.70.

In the first half of 2008, industry occupancy slipped 2.6% to 61.4% versus the same period in 2007. The average room rate was up 4.2% to $107.64 and REVPAR gained 1.5% to $66.11. First half industry room supply increased 2.3% while demand (room nights sold) fell 0.3%. Room revenue grew 3.9% in the first six months of 2008 to $54 billion.

In the month of June 2008, occupancy tumbled 4.5% to 68% while the average room rate improved 3.2% to $106.89. June REVPAR declined 1.4% to $72.72.

“The U.S. lodging industry is facing strong headwinds,” said Mark Lomanno, President of Smith Travel Research. “A slowing economy and significant fuel and food price increases are squeezing consumers and damping lodging demand. At the same time, room supply growth is increasing. The combination of growing supply and slowing demand has resulted in declining occupancies and slower, though steady, average rate increases. We expect a challenging operation environment in the second half of the year.”

See other recent news regarding: Travel News Asia, Promotions, New Hotels, Smith Travel Research, Visitor Arrivals