Hotels in U.S. Enjoy 8.3% RevPAR Increase in 2014; Nashville Tops List with 19%

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

Overall, in year-on-year results, the U.S. hotel industry’s occupancy was up 3.6% to 64.4%; ADR rose 4.6% to US$115.32; and RevPAR increased 8.3% to US$74.28.

STR is forecasting a 5.2% increase in ADR and a 6.4% increase in RevPAR for 2015.

“The U.S. hotel industry experienced a great year and ended 2014 on a positive note,” said Amanda Hite, president and COO of STR, Inc. “The year’s performance broke several records thanks to continued strong demand growth. ADR and RevPAR for the year were the highest ever recorded by STR, and we expect more growth in 2015.”

Twelve of the Top 25 Markets reported double-digit RevPAR increases. Topping out the list were: Nashville, Tennessee (+19.0% to US$84.20); Denver, Colorado (+16.2% to US$84.86); and Atlanta, Georgia (+13.1% to US$62.66).

Two markets reported double-digit ADR increases: Nashville (+12.8% to US$116.86) and San Francisco/San Mateo, California (+10.9% to US$207.81).

Atlanta, Georgia, reported the highest occupancy increase for the year, rising 8.1% to 68.2%. Denver followed with a 6.5% increase to 75.4%.

None of the Top 25 Markets reported decreases in the three key performance metrics for the year.

Quarterly Results

In year-on-year measurements, the overall U.S. hotel industry saw an increase in occupancy of 4.2% to 59.8%. ADR increased 4.5% to US$115.14, while RevPAR was up 8.9% to US$68.87 during the quarter.

Among the Top 25 Markets, Washington, D.C.-Maryland-Virgina, led in occupancy with a 7.3% increase to 63.4%. Nashville led in both ADR and RevPAR, with ADR growing by 12.0% to US$119.64 and RevPAR finishing up 20.0% to US$82.61.