TravelNewsAsia.com
Fri, 21 October 2016

US Hotel Industry Reports September 2016 Increase in ADR, OR and RevPAR

According to data compiled by STR, the U.S. hotel industry recorded positive results in the three key performance metrics during September 2016.

Compared with September 2015, the U.S. hotel industrys occupancy increased 1.6% to 68.8%, ADR was up 3.9% to US$127.07 and RevPAR grew 5.6% to US$87.40.

September was the best month of 2016 in terms of RevPAR growth rate. In fact, September was only the second month this year where growth hit 5% or higher, said Jan Freitag, STRs senior VP for lodging insights. It is important to note that growth was boosted by a favorable calendar shift with Rosh Hashanah and Yom Kippur (September 2015 to October 2016). Well see the reverse of that calendar shift in October results, which will fall more in line with the overall slowdown the industry is experiencing. Nonetheless, the absolute RevPAR and demand levels were the highest for any September on record. Because of the strong performance this month, September year-to-date occupancy was the highest we have ever benchmarked (67.1%).

Among the Top 25 Markets, Minneapolis/St. Paul, Minnesota-Wisconsin, posted the largest year-over-year increases in ADR (+15.7% to US$136.28) and RevPAR (+21.5% to US$109.28). Occupancy in the market rose 5.1% to 80.2%.

Seven additional markets saw a double-digit lift in RevPAR: New Orleans, Louisiana (+18.8% to US$92.97); Orlando, Florida (+16.9% to US$67.83); Phoenix, Arizona (+16.5% to US$66.11); Los Angeles/Long Beach, California (+14.3% to US$140.88); Atlanta, Georgia (+13.0% to US$80.15); Washington, D.C.-Maryland-Virginia (+11.7% to US$124.76); and San Diego, California (+11.2% to US$122.17).

After Minneapolis/St. Paul, one other market recorded a double-digit rise in ADR: Los Angeles/Long Beach (+10.0% to US$169.93).

New Orleans experienced the only double-digit increase in occupancy (+13.1% to 68.6%).

Houston, Texas, reported the largest declines across the three key performance metrics. Occupancy in the market fell 9.3% to 59.8%; ADR was down 4.2% to US$102.06; and RevPAR dropped 13.1% to US$61.02.

No other Top 25 Market reported a double-digit decrease in any of the metrics.

The major markets grew RevPAR at the same level as all other markets (+5.5%), but the other markets were able to raise rates at a higher percentage, Freitag said. That is a function of higher supply growth and less pricing power in the Top 25 Markets.

See other recent news regarding: STR, ADR, RevPAR

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2023 TravelNewsAsia.com