Hotel industry in U.S. reports positive results in June 2015

Published on : Friday, July 24, 2015

STR-logoThe U.S. hotel industry reported positive results in the three key performance metrics during June 2015, according to data from STR, Inc.

 

 

 

In year-over-year results, the U.S. hotel industry’s occupancy was up 2.1 percent to 73.1 percent; its average daily rate rose 5.0 percent to US$121.57; and its revenue per available room increased 7.2 percent to US$88.84.

 

 

“The number of available U.S. hotel rooms topped 5 million for the first time ever,” said Jan Freitag, STR’s senior VP of strategic development. “June demand (more than 109 million room nights sold) was also the highest for any June, and with supply growth inching up to only 1.1 percent, the month’s occupancy was a June record and the highest monthly occupancy this year.”

 

 

Freitag also noted that RevPAR in the U.S. has increased for 64 consecutive months. ADR has risen year-over-year at 5.0 percent or higher in three of the first six months of 2015.

 

 

Of the Top 25 Markets, 12 reported double-digit RevPAR growth, led by Philadelphia, Pennsylvania-New Jersey (+25.4 percent to US$115.26). New Orleans, Louisiana (+19.6 percent to US$100.09), and Seattle, Washington (+18.8 percent to US$156.24), were the other two markets to post RevPAR increases of more than 15.0 percent.

 

 

Houston, Texas (-1.5 percent to US$75.03), and Minneapolis/St. Paul, Minnesota-Wisconsin (-0.6 percent to US$94.17), were the only two Top 25 Markets to report a decrease in RevPAR for June.

 

Every Top 25 Market reported positive ADR performance for the month. Three of the markets posted double-digit ADR increases: Seattle (+16.3 percent to US$174.73); Philadelphia (+15.7 percent to US$143.03); and Boston, Massachusetts (+10.2 percent to US$205.74).

 

New York, New York, reported the lowest year-over-year increase in ADR, up 0.8 percent to US$272.50.

 

“The Top 25 Markets increased ADR on average by 5.8 percent,” Freitag said. “Once again, New York City is the odd man out with basically no pricing power at all. Everywhere else, though, it looks like full hotels allowed hoteliers to increase rates, sometimes by double digits.”

 

New Orleans was the only market to experience a double-digit rise in occupancy, up 10.2 percent to 73.7 percent.

 

Minneapolis/St. Paul (-3.6 percent to 79.1 percent) and Houston (-3.6 percent to 71.1 percent) saw the largest occupancy declines for the month.

 

“Houston continues to underperform with year-to-date RevPAR down 1.7 percent, driven down by a 3.8-percent decline in occupancy,” Freitag said. “As the oil and gas industry tries to stabilize, the hotel industry continues to be a victim to volatility in this market.”
Source: STR.

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