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Published on : Wednesday, June 24, 2015
In year-over-year results, the U.S. hotel industry’s occupancy was up 0.8 percent to 67.5 percent; its average daily rate rose 5.0 percent to US$120.64; and its revenue per available room increased 5.9 percent to US$81.43.
“May 2015 broke the occupancy record for the month, and demand broke an unprecedented 104 million room nights,” said Jan Freitag, STR’s senior VP of strategic development. “Annualized occupancy is still at 65.0 percent, so all indicators are again at record levels on an annual basis.”
Freitag also noted that RevPAR in the U.S. has increased for 63 consecutive months.
Among the Top 25 Markets, Denver, Colorado, reported the largest increases in each of the three key performance metrics. Occupancy in the market increased 6.1 percent to 80.6 percent; ADR was up 15.0 percent to US$123.86; and RevPAR rose 22.0 percent to US$99.86.
Six additional markets reported double-digit RevPAR growth, led by Nashville, Tennessee (+17.4 percent to US$100.34), and Seattle, Washington (+13.2 percent to US$111.66).
In addition to Denver, three Top 25 Markets posted a double-digit ADR increase: New Orleans, Louisiana (+12.5 percent to US$162.09); Nashville (+11.5 percent to US$128.42); and Chicago, Illinois (+11.4 percent to US$163.53).
“The largest markets had a great start to the summer with occupancy over 76.0 percent and ADR US$30.00 higher than the U.S. average,” Freitag said. “RevPAR growth (+6.5 percent) was again leading all other markets (+5.4 percent) and was driven by ADR growth (+5.2 percent).”
Houston, Texas, reported the largest decreases in the three key performance measurements. Occupancy in Houston dipped 6.0 percent to 71.4 percent; ADR was down 2.5 percent to US$121.40; and RevPAR decreased 8.3 percent to US$86.67.
New York, New York, was the only other market to show decreases in each of the three key performance metrics. Occupancy in the market dipped 1.2 percent to 89.4 percent; ADR was down 0.9 percent to US$281.05; and RevPAR dropped 2.2 percent to US$251.38.