STR Reports US Hotel Occupancy Rises During January 2015

US Hotel Occupancy Rises 4.2% to 54.4% in January

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. February 23, 2015

February 23, 2015 - The U.S. hotel industry reported positive results in the three key performance metrics during January 2015, according to data from STR, Inc.

In year-over-year results, the U.S. hotel industry's occupancy was up 4.2 percent to 54.4 percent; its average daily rate rose 4.3 percent to US$113.32; and its revenue per available room increased 8.6 percent to US$61.63.

Jan Freitag, STR's senior VP, strategic development, said the month's performance was noteworthy in that the Top 25 Markets underperformed “all other” markets' growth in all three key performance indicators.

“New York City, because of bad weather and tough Super Bowl comps from last year, registered a RevPAR decline of 12.9 percent,” Freitag said. “Phoenix, on the other hand, had a healthy lift in its results because of Super Bowl XLIX.”

Of the Top 25 Markets, Phoenix, Arizona, reported the largest increase in all three performance metrics during the month. The market's RevPAR increased 42.1 percent to US$112.07; its ADR rose 28.2 percent to US$159.17; and its occupancy was up 10.8 percent to 70.4 percent.

Eight other Top 25 markets achieved double-digit RevPAR increases. San Francisco/San Mateo, California, reported the second-highest RevPAR increase, rising 20.3 percent to US$160.37. Tampa/St Petersburg, Florida, followed with a 16.2-percent increase to US$77.38.

Philadelphia, Pennsylvania-New Jersey, reported the largest RevPAR decrease, falling 13.6 percent to US$56.76.

After Phoenix, San Francisco/San Mateo reported the second-highest ADR increase (+16.9 percent to US$218.96). New York, New York, recorded the largest ADR decrease, falling 8.6 percent to US$190.16. Philadelphia reported the only double-digit occupancy decrease during the month, slipping 10.6 percent to 50.9 percent.

“We expect that the first quarter of 2015 will continue to see strong results, but the tough comparables of the later quarters will ultimately lead to growth rates that are more muted in 2015,” Freitag said.