HENDERSONVILLE, Tennessee—Upper-tier hotels reported the largest revenue per available room increases among the chain-scale segments in August, according to data from STR.
The luxury segment experienced the largest RevPAR increase, rising 11.1% to US$160.96, followed by the upscale segment (+9.8% to US$74.91) and the upper-upscale segment (+9.1% to US$96.24).
Overall, the industry’s occupancy was up 6.4% to 63.9%, average daily rate ended the month with a 1.5% increase to US$98.69, and REvPAR for the month rose 8.1% to finish at US$63.08.
“This month we started to see rate growth beginning to improve and come back in upper-tier segments, however the industry still has a long way to go,” said Mark Lomanno, president at STR. “Pricing power is expected to begin to come back in the major markets and expand broader to the smaller markets.”
“We are looking forward to seeing how the group demand and pricing for the group demand comes back in the fourth quarter and the effect it will have on the year-end performance,” Lomanno said.
Among the chain-scale segments, the upscale segment reported the largest occupancy increase, rising 8.0% to 70.5%, followed by the midscale-without-food-and-beverage segment (+7.4% to 64.7%) and the economy segment (+7.1% to 58.2%).
The luxury segment experienced the largest ADR increase, rising 5.7% to US$232.91. The economy segment posted the only ADR decrease, falling 1.5% to US$53.02.
Among the top 25 markets, Detroit, Michigan, achieved the largest occupancy increase, rising 20.3% to 63.9%. None of the top markets experienced occupancy declines for the month.
New York, New York, rose 11.8% in ADR to US$207.14, reporting the largest increase in that metric. Nashville, Tennessee, posted the largest ADR decrease, falling 6.0% to US$80.29.
Four markets experienced RevPAR increases of more than 15 percent: New Orleans, Louisiana, (+23.0% to US$49.72); Detroit (+18.3% to US$48.43); Boston, Massachusetts (+17.2% to US$114.25), and Denver, Colorado (+15.8% to US$69.51). Phoenix, Arizona, ended the month with the only RevPAR decrease among the top markets, falling 4.0% to US$30.93.