HENDERSONVILLE, Tennessee—The U.S. hotel industry posted increases in all three key performance measurements during March 2011, according to data from STR.
In year-over-year measurements, the industry’s occupancy was up 6.1 percent to 61.4 percent. Average daily rate ended the month with a 3.8-percent increase to US$101.72. Revenue per available room for the month rose 10.1 percent to finish at US$62.47.
“The U.S. hotel industry recorded another demand increase during March 2011, which, when combined with room revenue and RevPAR increases of more than 10 percent, signals an ongoing recovery,” said Amanda Hite, STR’s president. “As in prior months, the highest ADR increases were recorded at the Luxury end of the spectrum. Luxury segment RevPAR growth was almost equally made up of ADR and occupancy growth, sending a strong signal to lower-rated chain scales that pricing power is returning.
“Supply growth remained muted as only 1.0 percent of new rooms were added to the U.S. inventory. The Upscale and Upper Midscale segment rooms still grew at a rate of 3.0 percent and 3.6 percent, respectively, indicating development activity for these hotels has not been curtailed by lack of funding,” she said.
“Hoteliers in the Top 25 Markets continue to register strong ADR growth, with San Francisco (+12 percent), Oahu (+9 percent), New Orleans (+8.9 percent) and Chicago (+7 percent) recording the largest increases,” Hite continued. “New York hotels, which had reported strong demand growth throughout the year, recorded a 4.1-percent decrease in occupancy while rates increased 5.8 percent.”
Among the Top 25 Markets, four markets achieved double-digit occupancy increases: Detroit, Michigan (+13.4 percent to 56.7 percent); Tampa-St. Petersburg, Florida (+11.2 percent to 81.1 percent); Dallas, Texas (+10.7 percent to 61.5 percent); and New Orleans, Louisiana (+10.5 percent to 78.7 percent). Two markets reported occupancy decreases: New York, New York (-4.1 percent to 78.2 percent), and Washington, D.C. (-1.5 percent to 70.6 percent).
San Francisco/San Mateo, California, was the only top market to experience a double-digit ADR increase, rising 12 percent to US$142.49. Atlanta, Georgia, fell 3.7 percent in ADR to US$84.37, reporting the largest decrease in that metric, followed by Norfolk-Virginia Beach, Virginia, with a 3.3-percent decrease to US$74.28.
New Orleans jumped 20.4 percent in RevPAR to US$110.13, reporting the largest increase in that metric. Six other markets experienced RevPAR increases of more than 15 percent: San Francisco/San Mateo (+17.5 percent to US$105.62); Chicago, Illinois (+16.4 percent to US$63.60); Dallas, Texas (+16.1 percent to US$52.98); Orlando, Florida (+16.1 percent to US$83.54); Tampa-St. Petersburg (+15.8 percent to US$91.63); and Detroit (+15.5 percent to US$42.73). None of the Top 25 Markets experienced RevPAR decreases.
View U.S. hotel review for March.
Media Contacts:
Jeff Higley
VP, Digital Media & Communication
jeff@str.com
+1 (615) 824 8664 ext. 3318
Rachael Spann Urie
Communications Coordinator
rurie@str.com
+1 (615) 824 8664 ext. 3305
