STR - Positive Performance for US Hotel Industry for May 2011

. June 24, 2011

alt text June 23, 2011 - In year-over-year measurements, the industry's occupancy was up 4.6 percent to 61.5 percent, average daily rate ended the month with a 4.0-percent increase to US$101.54, and revenue per available room rose 8.8 percent to US$62.47.
The U.S. hotel industry posted increases in all three key performance measurements during May 2011, according to data from STR.

In year-over-year measurements, the industry's occupancy was up 4.6 percent to 61.5 percent, average daily rate ended the month with a 4.0-percent increase to US$101.54, and revenue per available room rose 8.8 percent to US$62.47.

“The U.S. hotel industry continues to get closer to peak ADR levels reached in 2008,” said Amanda Hite, president at STR. “May's gains and the steady ADR gains for the year are positive signs that hoteliers are starting to feel comfortable leveraging rates. With consistent demand for hotel rooms it is clear that the industry is on the right path, and we are looking for even more improvement in ADR for the remainder of 2011.”

Among the Top 25 Markets, Detroit, Michigan, experienced the largest occupancy increase, rising 13.7 percent to 61.4 percent, followed by Tampa-St. Petersburg, Florida, with a 13.0-percent increase to 58.6 percent. Nashville, Tennessee (-5.8 percent to 63.7 percent), and New York, New York (-1.9 percent to 85.9 percent), reported the only occupancy decreases among the top markets.

Four markets achieved double-digit ADR increases: San Francisco/San Mateo, California (+16.5 percent to US$157.06); Nashville (+11.9 percent to US$92.88); Oahu Island, Hawaii (+11.5 percent to US$158.85); and Chicago, Illinois (+10.5 percent to US$125.96).

None of the top markets reported ADR or RevPAR decreases for the month.

San Francisco/San Mateo RevPAR jumped 25.0 percent to US$129.77, reporting the largest increase in that metric. Five other markets also experienced RevPAR increases of more than 15 percent: Miami-Hialeah, Florida (+18.1 percent to US$106.02); Detroit (+17.7 percent to US$47.72); Orlando, Florida (+16.5 percent to US$58.87); Tampa-St. Petersburg (+16.4 percent to US$54.60); and Oahu Island (+15.3 percent to US$120.62).

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Coming up in February 2019...

Social Media: Getting Personal

There Social media platforms have revolutionized the hotel industry. Popular sites such as Facebook, Twitter, Pinterest, Instagram, Snapchat, YouTube and Tumblr now account for 2.3 billion active users, and this phenomenon has forever transformed how businesses interact with consumers. Given that social media allows for two-way communication between businesses and consumers, the emphasis of any marketing strategy must be to positively and personally engage the customer, and there are innumerable ways to accomplish that goal. One popular strategy is to encourage hotel guests to create their own personal content - typically videos and photos -which can be shared via their personal social media networks, reaching a sizeable audience. In addition, geo-locational tags and brand hashtags can be embedded in such posts which allow them to be found via metadata searches, substantially enlarging their scope. Influencer marketing is another prevalent social media strategy. Some hotels are paying popular social media stars and bloggers to endorse their brand on social media platforms. These kinds of endorsements generally elicit a strong response because the influencers are perceived as being trustworthy by their followers, and because an influencer's followers are likely to share similar psychographic and demographic traits. Travel review sites have also become vitally important in reputation management. Travelers consistently use social media to express pleasure or frustration about their guest experiences, so it is essential that every review be attended to personally. Assuming the responsibility to address and correct customer service concerns quickly is a way to mitigate complaints and to build brand loyalty. Plus, whether reviews are favorable or unfavorable, they are a vital source of information to managers about a hotel's operational performance.  The February Hotel Business Review will document what some hotels are doing to effectively incorporate social media strategies into their businesses.