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STR: Upscale segment tops occ. increases

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15 April 2010
By Rachael Spann Urie
Director, Public Relations, STR
rurie@str.com

HENDERSONVILLE, Tennessee—The upscale segment reported the largest occupancy increase for the week, rising 17.6 percent to 66.6 percent in year-over-year measurements for the week ending 10 April 2010, according to STR.

Six of the seven chain-scale segments reported occupancy increases of more than 10 percent for the week.

The upper-upscale segment was the only segment to not report an average-daily-rate decrease, ending the week flat at US$139.09.

Five of the seven segments reported revenue-per-available-room increases of more than 10 percent: upper upscale (+15.2 percent to US$95.58); upscale (+14.1 percent to US$69.87); luxury (+12.9 percent to US$168.02); midscale without food and beverage (+12.2 percent to US$50.65); and midscale with food and beverage (+11.1 percent to US$43.23).

Overall the industry’s occupancy increased 12.6 percent to 59.2 percent; ADR ended the week virtually flat with a 0.4-percent decrease to US$96.31; and RevPAR was up 12.1 percent to US$57.00.

“We saw strong RevPAR growth this week because of a favorable Easter comparison,” said Chad Church, industry research manager at STR. “Given the past few weeks’ performance trend and favorable year-over-year comparisons, we expect to see occupancy rates continue to drive RevPAR gains for the near future, particularly in the upper scales”

Among the top 25 markets, Boston, Massachusetts, experienced the largest occupancy increase, up 27.6 percent to 70.4 percent. Only two of the top markets reported occupancy decreases: Norfolk-Virginia Beach, Virginia (-5.8 percent to 53.2 percent), and Orlando, Florida (-3.0 percent to 76.9 percent).

New Orleans posted the largest ADR and RevPAR increases, rising 18.5 percent to US$118.01 and 51.0 percent to US$76.26, respectively.

Detroit, Michigan, reported the largest ADR and RevPAR decreases. The market’s ADR fell 18.4 percent to US$76.45 and RevPAR dropped 11.2 percent to US$39.37.

 

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