US luxury hotels buck trend

US luxury hotels buck trend

Luxury hotels were the only hotel segment in the US to report occupancy increases in the last week of November. The luxury sector reported the largest and only double-digit occupancy increase, jumping 10.6% to 45.2%, according to data from STR.

Two other segments also reported increases – the “upper upscale” – up 3% to 41.4% – and the upscale segment – up 1.1% to 43.1%.

Overall however the US hotel industry posted year-on-year declines in all three key performance measurements.

Occupancy fell 1.7% to 40.7%. Average Daily Rate fell 6.7% to $84 and revenue per available room (revPAR) fell 8.4% to 43.1%.

Among the Top 25 markets, Oahu Island, Hawaii, reported the largest occupancy increase, jumping 27% to 79%.

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Four other markets reported double-digit occupancy increases: Detroit, Michigan (+13.9 % to 42.1 %); Norfolk-Virginia Beach, Virginia (+13.9 % to 38.4 %); Denver, Colorado (+11.4 % to 35.5 %); and Minneapolis-St. Paul Minnesota-Wisconsin (+10.7 % to 37.4 %).

Houston, Texas, was the only market to experience a double-digit occupancy decrease, falling 17.1 % to 36.9 %.

None of the Top 25 markets reported an ADR increase.

New Orleans, Louisiana, posted the smallest ADR decrease, falling 1.3 % to US$101.88.

Oahu Island jumped 20.0 % to US$120.83 in revPAR, reporting the largest increase among the markets, followed by Norfolk-Virginia Beach (+9.8 % to US$24.53) and Detroit (+6.5 % to US$28.36).

Houston posted the largest revPAR decrease, dropping 30.8% to US$26.30.