Niche hotels have shown strong performance in the years since the downturn, STR’s Lauren Faulkner said in a presentation at the Hotel Data Conference.
NASHVILLE, Tennessee—Standing out from the pack is not necessarily a bad thing, owners and operators of U.S. niche hotels have discovered.
Lauren Faulkner, business development executive with STR, parent company of Hotel News Now, shined light on the performance of these hotels—which include extended stay, all suite, ski, golf and spa resorts, boutique, and convention hotels—during a presentation titled “Niche segments: Pinpointing performance” last week at the 5th annual Hotel Data Conference hosted by STR and Hotel News Now.
“It’s good to be different,” Faulkner said.
Hotels in the extended-stay segment boasted the highest year-to-date occupancy through July of the niche segments. Extended-stay upper hotels had an occupancy rate of 77.8%, while hotels in the extended-stay lower segment showed occupancy of 73%.
Year-to-date through July occupancy for the boutique segment was 74.3%, which is back to 2007 levels, though rate is still $16 below 2008.
“It’s taking some time to get rates back to where they were for that segment,” Faulkner said.
Convention properties have been slowly recovering rate, up 4.3% year-to-date through July, while occupancy is up 0.9%.
Faulkner noted that convention properties have consistently high occupancies, which at 71.2% year-to-date through July was higher than both conference hotels (64.2%) and total U.S. hotels (63.2%).
At 72%, all-suite hotels have surpassed prior peak occupancy year-to-date through July. Meanwhile, rates for all-suite properties ($106.71) have nearly surpassed 2008 rate levels of $107.
5. Ski resorts
The segment saw the steepest occupancy decline during the downturn, falling 14.5% in 2009. However, ski resorts saw the strongest occupancy recovery post-downturn, up 8.8% the following year. Year-to-date through July, occupancy for ski resorts is up 7.6%.