HENDERSONVILLE, Tennessee—The luxury segment reported the largest increases in all three key performance metrics in 2010, according to data compiled by STR.
The segment’s occupancy rose 7.8% to 66.2%, average daily rate was up 2.1% to US$249.65, and RevPAR increased 10.1% to US$165.29.
Overall, the U.S. hotel industry’s occupancy increased 5.7% to 57.6%, ADR ended the year virtually flat with a 0.1% decrease to US$98.08, and revenue per available room was up 5.5% to US$56.47.
“2010 will be known as the year of demand recovery,” said Mark Lomanno, STR’s CEO. “For most industry markets and segments, the number of people purchasing hotel rooms approached and in some cases exceeded pre-recession levels. However, for myriad reasons including but not limited to historically low occupancies, late booking patterns and the sluggish return of group business, room rate acceleration did not follow the influx of guests. We look to see this change dramatically in 2011, especially during the second half of the year.”
Among the chain-scale segments, the economy segment experienced the largest ADR decrease, falling 3.1% to US$49.38.
Three segments, other than the luxury segment, reported RevPAR increases of more than 5%: the upper-upscale segment (+5.7% to US$96.19); the upscale segment (+5.7% to US$69.97); and the independent segment (+5.2% to US$52.46).
Among the top 25 markets, Detroit, Michigan, experienced the largest occupancy increase, rising 14.2% to 54.3%. Houston, Texas, ended the year virtually flat with a 0.3% occupancy decrease to 55.1%, reporting the only decrease among the top markets.
New York, New York, achieved the only ADR increase of more than 5%, rising 7.5% to US$232.29. Tampa-St. Petersburg, Florida, reported the largest ADR decrease, falling 7.2% to US$91.43, followed by Detroit with a 5.2% decrease to US$74.49.
Five top markets experienced double-digit RevPAR increases for the year: New Orleans (+14.7% to US$74.92); Boston, Massachusetts (+13.0% to US$97.19); New York (+12.9% to US$187.93); Miami-Hialeah, Florida (+10.9% to US$101.19); and Denver, Colorado (+10.5% to US$59.25). Houston (-4.2% to US48.78) and Tampa-St. Petersburg (-1.5% to US$50.56) experienced the only RevPAR decreases for the year.
During December 2010, the industry’s occupancy increased 5.4% to end the month at 46.0%. ADR was up 1.9% to finish the month at US$96.22. RevPAR for the month rose 7.4% to finish at US$44.23.
Source: STR
