STR: US hotel performance for September 2016
STR: US hotel performance for September 2016
20 OCTOBER 2016 8:40 AM

During September 2016, the U.S. hotel industry's occupancy rose 1.6% to 68.8%, ADR increased 3.9% to $127.07 and RevPAR grew 5.6% to $87.40 when compared with the same month in 2015.

HENDERSONVILLE, Tennessee—The U.S. hotel industry recorded positive results in the three key performance metrics during September 2016, according to data from STR.

Compared with September 2015, the U.S. hotel industry’s occupancy increased 1.6% to 68.8%. Average daily rate (ADR) for the month was up 3.9% to US$127.07. Revenue per available room (RevPAR) grew 5.6% to US$87.40, marking the 79th consecutive month with a year-over-year increase in the metric.

“September was the best month of 2016 in terms of RevPAR growth rate. In fact, September was only the second month this year where growth hit 5% or higher,” said Jan Freitag, STR’s senior VP for lodging insights. “It is important to note that growth was boosted by a favorable calendar shift with Rosh Hashanah and Yom Kippur (September 2015 to October 2016). We’ll see the reverse of that calendar shift in October results, which will fall more in line with the overall slowdown the industry is experiencing.

“Nonetheless, the absolute RevPAR and demand levels were the highest for any September on record. Because of the strong performance this month, September year-to-date occupancy was the highest we have ever benchmarked (67.1%).”

Among the Top 25 Markets, Minneapolis/St. Paul, Minnesota-Wisconsin, posted the largest year-over-year increases in ADR (+15.7% to US$136.28) and RevPAR (+21.5% to US$109.28). Occupancy in the market rose 5.1% to 80.2%.

Seven additional markets saw a double-digit lift in RevPAR: New Orleans, Louisiana (+18.8% to US$92.97); Orlando, Florida (+16.9% to US$67.83); Phoenix, Arizona (+16.5% to US$66.11); Los Angeles/Long Beach, California (+14.3% to US$140.88); Atlanta, Georgia (+13.0% to US$80.15); Washington, D.C.-Maryland-Virginia (+11.7% to US$124.76); and San Diego, California (+11.2% to US$122.17).

After Minneapolis/St. Paul, one other market recorded a double-digit rise in ADR: Los Angeles/Long Beach (+10.0% to US$169.93).

New Orleans experienced the only double-digit increase in occupancy (+13.1% to 68.6%).

Houston, Texas, reported the largest declines across the three key performance metrics. Occupancy in the market fell 9.3% to 59.8%; ADR was down 4.2% to US$102.06; and RevPAR dropped 13.1% to US$61.02.

No other Top 25 Market reported a double-digit decrease in any of the metrics.

“The major markets grew RevPAR at the same level as all other markets (+5.5%), but the other markets were able to raise rates at a higher percentage,” Freitag said. “That is a function of higher supply growth and less pricing power in the Top 25 Markets.”

View the U.S. hotel review for September 2016 here.

Media Contacts:

Jeff Higley
VP, Digital Media & Communications
+1 (615) 824-8664 ext. 3318

Nick Minerd
Public Relations Manager
+1 (615) 824-8664 ext. 3305

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