STR reports US Q3 2014 results
23 OCTOBER 2014 8:44 AM
The industry’s occupancy increased 3.8% to 70.3%; its ADR rose 5.2% to $117.91; and RevPAR was up 9.2% to $82.93.
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported increases in all three key performance metrics for the third quarter 2014 in year-over-year measurements, according to data from STR, Inc.
The industry’s occupancy increased 3.8 percent to 70.3 percent; average daily rate rose 5.2 percent to US$117.91; and revenue per available room was up 9.2 percent to US$82.93. Demand increased 4.8 percent during the third quarter, while supply was up 0.9 percent.
“Third-quarter RevPAR growth of 9.2 percent was the highest quarterly growth rate since the first quarter of 2006 and the highest third-quarter growth STR has ever recorded,” said Bobby Bowers, senior VP of operations at STR. “The strong RevPAR increase was driven primarily by ADR; occupancy also increased at a healthy 3.8-percent clip. Third-quarter occupancy was the highest quarterly occupancy number since the third quarter of 1997. STR anticipates full-year 2014 U.S. industry RevPAR growth of around 7 percent.”
Among the Top 25 Markets, Atlanta, Georgia (+9.8 percent to 71.8 percent), and New Orleans, Louisiana (+9.1 percent to 64.3 percent), reported the largest occupancy increases.
Five markets achieved double-digit ADR increases: Seattle, Washington (+13.2 percent to US$158.70); Nashville, Tennessee (+11.9 percent to US$115.63); Denver, Colorado (+11.8 percent to US$119.47); San Francisco/San Mateo, California (+11.1 percent to US$226.92); and Boston, Massachusetts (+10.8 percent to US$186.52).
New Orleans recorded the largest RevPAR increase, rising 18.0 percent to US$79.35. Five other markets experienced RevPAR increases of more than 15.0 percent: Nashville (+17.3 percent to US$86.67); Atlanta (+17.2 percent to US$67.88); Seattle (+16.2 percent to US$141.96); Denver (+15.9 percent to US$102.03); and Boston (+15.6 percent to US$162.16).
None of the top markets experienced a decrease in any of the three key performance metrics during the third quarter.
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