STR Reports US Hotel Industry Performance for June 2010

Travel News Asia Latest Travel News Podcasts Videos Thursday, 22 July 2010

According to data from STR, the U.S. hotel industry posted increases in all three key performance measurements during June 2010.

In year-on-year measurements, the industry's OR was up 6.9% to 65%. ADR ended the month with a 1% increase to US$98.33, while RevPAR for the month rose 8% to finish at US$63.87.

"After months of recovering room night demand, the U.S. hotel industry finally reported ADR growth in June," said Mark Lomanno, president of STR. "While this is certainly an encouraging sign, virtually all the increase in room rates was found in upper-end hotels and those in New York City. The industry's recovery will not be in full swing until room rate increases are seen in a much wider swath of industry segments."

All of the Top 25 Markets reported increases in occupancy for June. Oahu Island, Hawaii, reported the largest increase, rising 17.5% to 78.8%, followed by Minneapolis-St. Paul, Minnesota-Wisconsin (+16.4% to 71.6%), and Denver, Colorado (+15.3% to 76.6%).

New York, experienced the only double-digit ADR increase among the top markets, up 15.4% to US$230.11. New Orleans, Louisiana, dropped 9.2% in ADR to US$105.31, reporting the largest decrease in that metric, followed by Detroit, Michigan (-5.8% to US$75.73), and Seattle, Washington (-5.7% to US$112.02).

New York also achieved the largest RevPAR increase, jumping 22.5% to US$198.84. Five other markets ended the month with RevPAR increases of more than 15%: Chicago, Illinois (+21.4% to US$95.96); Minneapolis-St. Paul (+19.3% to US$67.47); Denver (+18.5% to US$74.89); Oahu Island (+17.4% to US$114.63); and Boston, Massachusetts (15.3% to US$118.32). Two markets posted RevPAR decreases: New Orleans (-1.6% to US$69.06) and Dallas (-1.4% to US$47.88). Seattle ended the month virtually flat with a 0.6% decrease to US$84.94.

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