STR Reports US Hotel Occupancy Rises During October 2014

Year-over-year results: the U.S. Occupancy Up 5.3% to 68.0% and ADR Rose 4.6 % to US$118.87

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. November 21, 2014

November 21, 2014 - The U.S. hotel industry reported positive results in the three key performance metrics during October 2014, according to data from STR, Inc.

Overall, in year-over-year results, the U.S. hotel industry's occupancy was up 5.3 percent to 68.0 percent; its average daily rate rose 4.6 percent to US$118.87; and its revenue per available room increased 10.1 percent to US$80.81.

"Room demand grew 6.3 percent in October, the largest monthly growth reported since December 2010," said Jan Freitag, senior VP of strategic development at STR. "The industry sold 104 million roomnights in October, something that has never happened in October. We broke the 100-million-roomnight mark for the fifth time this year.

"Occupancy this month ended at 68.0 percent, which marks the seventh month this year that occupancy was above 65.0 percent," Freitag continued. "The last time we recorded numbers like these was in the mid-90s. With occupancy on that level, pricing power for hoteliers continues, as ADR was up 4.6 percent this month. RevPAR growth also broke records, as the growth this month (+10.1 percent) was the strongest October ever recorded."

Fourteen of the Top 25 Markets reported double-digit RevPAR growth. Nashville, Tennessee, achieved the largest RevPAR growth, rising 23.4 percent to US$101.21. Four other markets reported RevPAR increases of more than 15.0 percent: Denver, Colorado (+20.5 percent to US$99.04); Orlando, Florida (+17.6 percent to US$78.95); Tampa/St. Petersburg, Florida (+16.4 percent to US$65.37); and Detroit, Michigan (+16.2 percent to US$64.58). Minneapolis/St. Paul, Minnesota-Wisconsin, posted the only RevPAR decrease, falling 4.0 percent to US$77.76.

All of the top markets recorded ADR increases. Nashville (+13.9 percent to US$126.34) led the gains, followed by Denver (+12.4 percent to US$123.03) and San Francisco/San Mateo, California (+12.3 percent to US$244.24).

Washington, D.C. (+10.5 percent to 74.6 percent), and Orlando (+10.1 percent to 73.6 percent) experienced the largest occupancy increases. Minneapolis/St. Paul fell 7.0 percent to 69.4 percent in occupancy, reporting the largest decrease in that metric.