HENDERSONVILLE, Tennessee— Nashville, Tennessee, reported the largest occupancy increase among the Top 25 Markets. The market’s performance was influenced by the flooding of the Cumberland River on 1-2 May 2010.
Occupancy in Nashville rose 30.1 percent to 73.1 percent, average daily rate decreased 4.8 percent to US$89.13, and revenue per available room jumped 23.8 percent to US$65.11.
“With an increase in demand brought on by folks forced to live elsewhere due to flooded homes, relief workers, contractors and insurance adjusters, it is interesting to see such a decline in local room rates,” said Duane Vinson, VP at STR. “The closing of the Gaylord Opryland Hotel is of course having an impact, but how much of the rate drop is due to hotels holding rate or even lowering room rates due to their compassion for the situation is unclear.”
Overall, the industry’s occupancy increased 4.4 percent to 60.2 percent, ADR fell 1.0 percent to US$97.50, and RevPAR rose 3.3 percent to US$58.70.
Four of the Top 25 Markets reported occupancy decreases for the week: Norfolk-Virginia Beach, Virginia (-4.3 percent to 55.6 percent); St. Louis, Missouri-Illinois (-3.8 percent to 57.2 percent); Houston, Texas (-2.1 percent to 57.6 percent); and Seattle, Washington (-0.6 percent to 67.7 percent).
New York, New York, experienced the largest ADR increase, rising 13.4 percent to US$236.92. Two markets reported double-digit ADR decreases: Chicago, Illinois (-12.0 percent to US$109.74), and Seattle (-10.4 percent to US$108.92).
Three markets, excluding Nashville, posted RevPAR increases of more than 20 percent: Denver (+30.6 percent to US$75.55); New York (+29.0 percent to US$212.29); and New Orleans, Louisiana (+23.3 percent to US$80.52). Seattle reported the largest RevPAR decrease, falling 10.9 percent to US$73.69, followed by St. Louis with a 10.1-percent decrease to US$47.11.
Source: STR
