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Hotels in U.S. Report Strong RevPAR Growth

Travel News Asia Videos Podcasts Latest Travel News Asia Wednesday, 22 October 2014
 

According to data from STR, the U.S. hotel industry reported positive results in the three key performance metrics during September 2014.

Overall, in year-on-year results, the U.S. hotel industrys occupancy was up 3.9% to 65.7%; ADR rose 5.3% to US$117.17; and RevPAR increased 9.5% to US$76.97.

September proved to be even stronger than August, with overall year-on-year RevPAR growth the second-highest of the year, said Carter Wilson, director of STR Analytics, STRs sister company. Supply nudged down to just under 1%, while nearly 98 million room nights were sold in September, the highest-ever recorded in that month. Demand growth in September was fueled by group business, which was up 8.6% for the month, the second-highest increase of the year. While transient demand was flat, transient rates surged 6.9%. Overall, however, group demand dominated in September, with a total monthly RevPAR increase of 13.3% compared to last year.

Among the Top 25 Markets, 16 of the top markets recorded double-digit RevPAR growth in September. New Orleans, Louisiana, rose 23.8% to US$87.64, reporting the largest increase in that metric, followed by Detroit, Michigan (+21.5% to US$65.06), Seattle, Washington (+20.4% to US$127.42), and Atlanta, Georgia (+19.3% to US$65.25). None of the top markets experienced a RevPAR decrease during September.

Four markets reported double-digit ADR increases: Seattle (+14.0% to US$150.71); Boston, Massachusetts (+12.1% to US$201.84); Nashville, Tennessee (+12.1% to US$119.50); and Denver, Colorado (+11.9% to US$121.33). Norfolk/Virginia Beach, Virginia, fell 0.6% to US$85.16, posting the only ADR decrease.

New Orleans increased 13.5% in occupancy to 66.5%, achieving the largest increase in that metric. Detroit followed with an 11.7-percent increase to 71.0%. Minneapolis/St. Paul, Minnesota-Wisconsin, fell 2.6% to 71.7% in occupancy, experiencing the only decrease in that metric.

Year-to-date 2014 in year-on-year changes, hotels in the U.S. increased 3.5% to 65.9% in occupancy; ADR was up 4.5% to US$115.49; and RevPAR rose 8.2% to US$76.14.

All in all, year-to-date RevPAR was up 8.2% compared to last year, and on a running three-month basis we are experiencing occupancy levels not seen since the peak occupancy periods of 1995 and 1996, Wilson said. The year continues to unfold at record levels, and rate is now pacing at its fastest year-to-date growth since 2007.

STR, September 2014, ADR, RevPAR

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