STR: US hotel performance for August 2014
STR: US hotel performance for August 2014
22 SEPTEMBER 2014 8:15 AM
Overall, in year-over-year results, the U.S. hotel industry’s occupancy was up 3.8% to 71.6%; its ADR rose 5.4% to $118.49; and its RevPAR increased 9.4% to $84.90.
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported positive results in the three key performance metrics during August 2014, according to data from STR.
Overall, in year-over-year results, the U.S. hotel industry’s occupancy was up 3.8 percent to 71.6 percent; its average daily rate rose 5.4 percent to US$118.49; and its revenue per available room increased 9.4 percent to US$84.90.
“August saw the second-highest RevPAR growth this year, which was fueled by continued strong demand increases across the board,” said Jan Freitag, senior VP of strategic development at STR. “Demand increased 4.8 percent, or 5 million rooms, from August of last year and pushed year-to-date demand up 4.3 percent. 
“Supply growth continued its slow and steady increase of 1.0 percent for the month,” Freitag continued. “So far this year, U.S. hotel occupancy is 66.0 percent, the strongest performance in the last 17 years. Demand is driven by the increase in travelers on business and leisure trips as well as prolonged strength in the group segment. Group occupancy increased 2.9 percent for the month and 3.3 percent year to date. These strong demand increases put hoteliers firmly in the driver’s seat with regard to pricing power. Room rates increased 5.4 percent in August, the highest rate since January 2008.”
Among the Top 25 Markets, Atlanta, Georgia, reported the only double-digit occupancy increase, rising 11.3 percent to 70.7 percent. Oahu Island, Hawaii, fell 1.2 percent to 88.3 percent, posting the largest occupancy decrease. 
Seven markets achieved double-digit ADR growth: Nashville, Tennessee (+12.7 percent to US$114.22); Seattle, Washington (+12.6 percent to US$163.83); San Francisco/San Mateo, California (+12.1 percent to US$229.10); Los Angeles/Long Beach, California (+11.1 percent to US$164.05); Denver, Colorado (+10.3 percent to US$116.90); Boston, Massachusetts (+10.0 percent to US$179.56); and Minneapolis/St. Paul, Minnesota-Wisconsin (+10.0 percent to US$113.90).
Four markets experienced RevPAR increases of more than 15.0 percent: Atlanta (+19.8 percent to US$66.13); Nashville (+17.9 percent to US$84.43); Tampa/St. Petersburg, Florida (+15.7 percent to US$62.35); and New Orleans, Louisiana (+15.2 percent to US$64.03).
None of the Top 25 Markets recorded an ADR or RevPAR decrease during the month.

View the U.S. hotel review for the month of August.

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