HENDERSONVILLE, Tennessee—The U.S. hotel industry in May experienced an average daily rate of more than US$100 for the third consecutive month, according to data from STR.
This was the first time ADR was above US$100 for three consecutive months since the beginning of 2009.
Overall, U.S. hotel industry occupancy in May was up 4.6% to 61.5%, ADR ended the month with a 4.0% increase to US$101.54, and revenue per available room rose 8.8% to US$62.47.
“The U.S. hotel industry continues to get closer to peak ADR levels reached in 2008,” said Amanda Hite, president at STR. “May’s gains and the steady ADR gains for the year are positive signs that hoteliers are starting to feel comfortable leveraging rates. With consistent demand for hotel rooms it is clear that the industry is on the right path, and we are looking for even more improvement in ADR for the remainder of 2011.”
Among the chain-scale segments, the upper-midscale segment posted the largest occupancy increase, rising 6.1% to 63.7%, followed by the luxury segment with a 5.0% increase to 71.5%.
Two chain-scale segments reported ADR increases of more than 5%: the luxury segment (+6.4% to US$254.61) and the upper-upscale segment (+5.1% to US$151.19). The midscale segment ended the month virtually flat with a 0.8% decrease to US$72.95.
Luxury segment RevPAR rose 11.8% to US$182.06, reporting the largest increase in that metric, followed by the upper-midscale segment with a 9.6% increase to US$60.30.
Among the top 25 markets, Detroit, Michigan, experienced the largest occupancy increase, rising 13.7% to 61.4%, followed by Tampa-St. Petersburg, Florida, with a 13.0% increase to 58.6 %. Nashville, Tennessee (-5.8% to 63.7%), and New York, New York (-1.9% to 85.9%), reported the only occupancy decreases.
Four markets achieved double-digit ADR increases: San Francisco/San Mateo, California (+16.5% to US$157.06); Nashville (+11.9% to US$92.88); Oahu Island, Hawaii (+11.5% to US$158.85); and Chicago, Illinois (+10.5% to US$125.96).
None of the top markets reported ADR or RevPAR decreases for the month. San Francisco/San Mateo jumped 25.0% in RevPAR to US$129.77, reporting the largest increase in that metric.
Source: STR
