Full Year 2006 Results for the US Lodging Industry
JANUARY 26, 2007. Full year 2006 industry occupancy was 63.4 percent, up 0.5 percent versus 2005. Average room rate increased 7.0 percent to $97.31 and revenue per available room (RevPAR) - the combination of occupancy and average room rate and a key industry productivity measure - gained 7.5 percent to $61.69.
Industry room supply increased 0.6 percent in 2006 while demand (roomnights sold) gained 1.1 percent. Full year 2006 room revenue increased 8.1 percent to $100 billion.
In the fourth quarter of 2006, industry occupancy was 58.2 percent, a decrease of 1.3 percent versus fourth quarter 2005. Average room rate was $98.27 in the quarter, an increase of 7.4 percent and revenue per available room improved by 6 percent.
"The U.S. lodging industry turned in another strong performance in 2006', said Mark Lomanno, President of Smith Travel Research. 'Industry RevPar growth was somewhat lower than the all-time high of 2005. However, since 2004, RevPar has grown nearly 24 percent - the strongest 3-year growth since STR began tracking hotel performance in 1987. We expect another good year in 2007. Room supply growth will likely increase but should remain below the long-term trend. Based on current economic expectations, demand growth should continue, with stronger numbers more likely in the second half. We believe full year 2007 industry RevPar growth should be in the 5.5 - 6.0 percent range."'
Smith Travel Research, the leader in lodging industry tracking and analysis, provides regular industry reporting to all major North American chains. STR has partnered with The Bench, a London based firm, to provide hotel benchmarking outside North America. For more information on STR or The Bench, go to www.smithtravelresearch.com or www.thebench.com.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
