Market & Trends Reports

STR Reports US Performance for Week Ending 6 March 2010

alt textMarch 12, 2010 - In year-over-year measurements, the industry’s occupancy ended the week with a 4.0-percent increase to 54.9 percent. Average daily rate dropped 3.0 percent to finish the week at US$96.05. Revenue per available room for the week was up 0.9 percent to finish at US$52.75.

The U.S. hotel industry reported mixed results in the three key performance measurements during the week of 28 February-6 March 2010, according to data from STR.

In year-over-year measurements, the industry’s occupancy ended the week with a 4.0-percent increase to 54.9 percent. Average daily rate dropped 3.0 percent to finish the week at US$96.05. Revenue per available room for the week was up 0.9 percent to finish at US$52.75.

The 0.9-percent year-over-year RevPAR growth represents only the third time in 18 months there was an increase in that metric, but the first time it wasn’t holiday-related.

“The growth in year-over-year RevPAR is significant because the occupancies are clearly showing an improvement and the decline in rates is finally starting to slow,” said Randy Smith, co-founder and CEO of STR. “While the size of the RevPAR increase is not significant, it is a clear sign that the outlook for the industry is improving.

“We do expect to see positive weekly RevPAR performances for the industry through the end of April,” Smith added. “If gasoline prices hold steady, this positive RevPAR performance could be a good indicator of a better summer than we’ve had for the past couple years, which of course is the key season for most hoteliers.”

Among the Chain Scale segments, the Luxury segment reported the only double-digit occupancy increase, jumping 16.5 percent to 66.4 percent, followed by the Upper Upscale segment (+8.4 percent to 66.1 percent) and the Upscale segment (+7.9 percent to 63.3 percent). The Luxury segment also reported the largest RevPAR increase, rising 10.2 percent to US$160.19.

Among the Top 25 Markets, Denver, Colorado, reported the largest occupancy increase, jumping 19.4 percent to 57.0 percent. Three other markets ended the week with occupancy increases of more than 15 percent: Miami-Hialeah, Florida (+18.0 percent to 79.9 percent); New York, New York (+17.7 percent to 73.5 percent); and New Orleans, Louisiana (+16.4 percent to 66.6 percent). Norfolk-Virginia Beach, Virginia, dropped 13.4 percent to 42.6 percent, posting the largest occupancy decline for the week.

Miami-Hialeah led the ADR increases, rising 10.1 percent to US$189.37, followed by Atlanta, Georgia, with a 6.0-percent increase to US$95.06. Anaheim-Santa Ana, California, experienced the largest ADR decrease, falling 12.1 percent to US$102.87.

Miami-Hialeah jumped 30.0 percent in RevPAR to US$151.25, reporting the largest increase in that metric. Two other top markets experienced RevPAR increases of more than 15 percent: Atlanta (+19.8 percent to US$58.54 percent) and Denver (+15.7 percent to US$51.76). Norfolk-Virginia Beach posted the largest RevPAR decrease, falling 23.0 percent to US$29.98.

About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC and HotelNewsNow.com. For more information, please visit www.str.com.

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