New Orleans, Louisiana, reported the largest occupancy and RevPAR increases for September 2010, according to data from STR. The market’s occupancy rose 34.9% to 57%, and RevPAR increased 47.1% to US$55.12. Average daily rate rose 9% to US$96.76.
Overall for the month of September, the industry’s occupancy was up 6.7% to 59.9%, ADR ended with a 2% increase to US$99.31, RevPAR rose 8.8% to US$59.49.
STR’s U.S. weekly performance results showed a similar upward trajectory. All seven chain-scale segments reported increases in the three key performance metrics during the week of 10-16 October 2010.
The upscale segment reported the largest occupancy increase, rising 9.1% to 72.6%, followed by the independent segment with an 8.7% increase to 61.5%. The luxury segment rose 2% in ADR to US$255.46, reporting the largest increase in that metric. Two segments experienced double-digit RevPAR increases: the upscale segment (+10.1% to US$79.38) and the midscale-without-food-and-beverage segment (+10% to US$56.13).
Overall weekly occupancy increased 8.3% to 63.8%, ADR was up 0.9% to US$100.40, and RevPAR ended the week up 9.4% to US$64.09.
Business travel hotel prices and airfare are expected to increase next year, according to the American Express Global Business Travel Forecast presented Tuesday, reports HotelNewsNow.com’s Stacey Higgins. Globally, 2011 hotel rate forecasted increases for midrange properties range from 1% to 10% and for upper-range properties the increases will range from 2% to 10%.
While AmEx does not offer specific predictions for meetings, it expects overall aggregate spending and frequency to increase. Frequency will increase because of smaller regional meetings. The only meeting spending category that is increasing is AV and technology services, while cuts are made to food & beverage and other amenities.
U.S. select-service hotel investors have a more optimistic outlook today than they did six months ago. According to Jones Lang LaSalle Hotels’ bi-annual U.S. Select Service Hotel Investor Survey, 43% of respondents indicated they have an overlying ‘buy’ strategy during the next six months, making this the dominant investment intention as investors vie for opportunities to acquire select-service properties priced below replacement cost and historic norms. Mid-market and upper mid-market assets are the primary target for acquisition.
Investors’ short-term outlook for RevPAR growth in the select-service sector is at its highest point since late 2007. During the next six months, 83% of respondents expect RevPAR in their markets to be flat or increase; a figure that increases to 92% for the one-year outlook, supporting investors’ confidence for the select-service hotel market and signifying a value recovery with positive momentum.
Understanding market segmentation is key to maximizing revenue from various lines of business. But applying those principles is easier said than done.
To help get you started, Miguel Solis, a revenue management expert, outlines ways to establish unique consumer segments and corporate market segments. When working on the latter, for example, he recommends you focus on location or cluster of industry; corporate type, size, industry or purchasing criteria; and behavioral characteristics, usage or buying status.
For the first time since January 2008, the Architecture Billings Index indicated a growth in design activity in September, increasing for the fourth straight month. The American Institute of Architects reported the September ABI score was 50.4, up from a reading of 48.2 the previous month. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings).
As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending. The new projects inquiry index was also up sharply, moving from 54.6 to 62.3—the highest mark since July 2007.
Compiled by Patrick Mayock.