US hotel industry posts key increases
The U.S. hotel industry posted increases in all three key performance measurements during October 2010, according to data from STR.
In year-over-year measurements, the industry’s occupancy was up 6.9 percent to 61.3 percent. Average daily rate ended the month with a 1.2-percent increase to US$100.89. Revenue per available room for the month rose 8.2 percent to finish at US$61.89.
“Overall, industry fundamentals continued to improve across the board in October,” said Mark Lomanno, president of STR. “While room rate growth remained sluggish in October, we attribute that to lower rated group business that was booked months before there was a significant demand turnaround. We’re hopeful that we will see steady, but probably slow, room rate growth for the remainder of the year.”
Among the Top 25 Markets, Detroit, Michigan, led the occupancy increases, rising 16.3 percent to 58.9 percent, followed by New Orleans, Louisiana (+14.8 percent to 72.7 percent), and Dallas, Texas (+13.2 percent to 61.6 percent). None of the top markets reported occupancy decreases for the month.
Two markets experienced ADR increases of more than 5 percent: New York, New York (+6.9 percent to US$272.57), and Boston, Massachusetts (+6.0 percent to US$165.83). Philadelphia, Pennsylvania-New Jersey, fell 7.3 percent to US$111.62, reporting the largest ADR decrease, followed by Nashville, Tennessee, with a 5.1-percent decrease to US$88.33.
Atlanta, Georgia (+17.7 percent to US$55.12), and New Orleans (+17.6 percent to US$91.96), reported the largest RevPAR increases. Philadelphia experienced the largest RevPAR decrease, falling 6.5 percent to US$78.53, followed by San Diego, California, with a 1.7-percent decrease to US$82.11.
Among the Chain Scale segments, the Upscale segment (+7.5 percent to 70.5 percent), the Midscale without Food and Beverage segment (+7.5 percent to 62.4 percent), and the Economy segment (+7.5 percent to 53.9 percent), reported the largest occupancy increases.
The Luxury segment experienced the largest increase in both ADR (+3.8 percent to US$258.49) and RevPAR (+10.2 percent to US$186.34) for the month.