STR released new weekly and monthly hotel data for the U.S. region today.
For the week of 8-14 May 2011, the luxury segment achieved the largest occupancy increase, rising 5.7% to 73.1%. In the previous week, 1-7 May 2011, the luxury segment had fallen behind the upper-midscale and economy segments.
Overall for this past week, the U.S. hotel industry’s occupancy rose 4.5% to 62.8%, its average daily rate increased 3.7% to US$101.14, and its revenue per available room finished the week up 8.4% to US$63.50.
Three top 25 markets achieved double-digit occupancy increases: Dallas, Texas (+16.8% to 64.7%); New Orleans, Louisiana (+15.2% to 76.2%); and Tampa-St. Petersburg, Florida (+11.1% to 58.6%).
With regards to the month of April, Houston, Texas, achieved the largest occupancy and RevPAR increases, according to data from STR.
The market’s occupancy rose 14.8% to 64.1%, and its RevPAR was up 26% to US$62.73. Houston’s ADR rose 9.8% to US$97.92.
Overall, the U.S. hotel industry’s occupancy was up 4.9% to 61.2%, its ADR ended the month with a 2.8% increase to US$100.55, and its RevPAR rose 7.9% to finish at US$61.51.
And Canada ended the week with a 4.1% increase in occupancy to 66.3%, a 2.5% increase in ADR to CAD$130.68 (US$134.99), and a 6.6% increase in RevPAR to CAD$86.65 (US$89.51).
Judging by the guidance given for the remainder of 2011, it looks like the hotel industry’s publicly traded companies are optimistic about the direction of the sector’s recovery.
While the economic environment is still shaky, the consensus among hotels seems to be RevPAR growth of between approximately 4% and 9.5% for the rest of the year, according to first-quarter earnings statements. At Wednesday’s close, the Baird/STR Hotel Stock Index was up 15.4% year over year, as indicated by the Hotel Investment Barometer’s data dashboard.
HotelNewsNow.com Finance Editor Shawn A. Turner heads right to the sources and writes about what some of the sector’s public companies have to say as far as 2011 guidance is concerned.
Choice Hotels International announced Wednesday at its 57th Annual Convention in Boston that it was dedicating US$250 million to growth of the Cambria Suites brand. The company has already committed US$60 million of that and expected to deploy the rest during the next 30 to 36 months.
The growth expectation for the brand is 150 hotels by 2017 or 2018, according to Brad LeBlanc, VP of franchise development for Cambria Suites.
HotelNewsNow.com News Editor Stacey Higgins is reporting from the conference this week and you can follow her live Twitter feed, @staceyhiggins.
MGM Resorts International, through a joint venture in China, hopes to raise up to US$1.5 billion in an initial public stock offering on the Hong Kong Stock Exchange.
MGM China Holdings is marketing 760 million shares for a 20% stake in the Chinese casino operator at a price ranging from US$1.59 to US$1.97, according to a notice to investors. After the IPO, MGM would hold 51% of the Chinese company and its partner Pansy Ho would hold 29%.
In the notice, MGM said the MGM Macau hotel and casino is well-positioned as Macau is already the world's largest gaming market and is “fed by a sizeable, under-penetrated population that is rapidly experiencing a substantial wealth increase.”
Boyd Gaming has provided an update on Sam’s Town Hotel and Gambling Hall in Tunica, Mississippi, which was forced to close 1 May after grounds and roadways around the property flooded.
Based on current conditions and river-level forecasts, Sam's Town Tunica is expected to reopen to the public on 27 May, according to the hotel’s website.
“This reopening date is tentative, and depends entirely on how quickly floodwaters recede along the Mississippi River,” the site says. “If water levels fall more slowly than predicted, or roadways remain inaccessible due to flooding or damage, we may have to delay our reopening.”
Boyd said it has been paying Sam’s Town employees in full since the site closed and will continue to pay through Sunday.
Compiled by Jason Q. Freed.