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Hotels in Phoenix (Arizona) Report 42.1% Increase in RevPAR

Travel News Asia Latest Travel News Podcasts Videos Friday, 20 February 2015

According to data from STR, hotels in the U.S. reported positive results in the three key performance metrics during January 2015.

In year-on-year results, the U.S. hotel industrys occupancy was up 4.2% to 54.4%; ADR rose 4.3% to US$113.32; and RevPAR increased 8.6% to US$61.63.

Jan Freitag, STRs senior VP, strategic development, said the months performance was noteworthy in that the Top 25 Markets underperformed all other markets growth in all three key performance indicators. New York City, because of bad weather and tough Super Bowl comps from last year, registered a RevPAR decline of 12.9%, Freitag said. Phoenix, on the other hand, had a healthy lift in its results because of Super Bowl XLIX.

Of the Top 25 Markets, Phoenix, Arizona, reported the largest increase in all three performance metrics during the month. The markets RevPAR increased 42.1% to US$112.07; its ADR rose 28.2% to US$159.17; and its occupancy was up 10.8% to 70.4%.

Eight other Top 25 markets achieved double-digit RevPAR increases. San Francisco/San Mateo, California, reported the second-highest RevPAR increase, rising 20.3% to US$160.37. Tampa/St Petersburg, Florida, followed with a 16.2% increase to US$77.38.

Philadelphia, Pennsylvania-New Jersey, reported the largest RevPAR decrease, falling 13.6% to US$56.76.

After Phoenix, San Francisco/San Mateo reported the second-highest ADR increase (+16.9% to US$218.96). New York, New York, recorded the largest ADR decrease, falling 8.6% to US$190.16. Philadelphia reported the only double-digit occupancy decrease during the month, slipping 10.6% to 50.9%.

We expect that the first quarter of 2015 will continue to see strong results, but the tough comparables of the later quarters will ultimately lead to growth rates that are more muted in 2015, Freitag said.


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