STR Reports Third-Quarter Increases for U.S. Hotel Industry
The U.S. hotel industry reported increases in all three key performance metrics for third-quarter 2010 in year-over-year measurements, according to data from STR. The industry’s occupancy was up 6.7 percent to 63.9 percent, average daily rate rose 1.6 percent to $99.07, and revenue per available room increased 8.4 percent to $63.34. For year-to-date 2010, occupancy increased 5.2 percent to 58.9 percent, ADR fell 0.7 percent to $97.89, and RevPAR was up 4.5 percent to $57.70.
“The U.S. hotel industry continued its recovery in the third quarter,” said Bobby Bowers, senior vice president at STR. “Quarterly occupancy growth was the highest STR has ever recorded, and ADR growth was positive for the first time since third-quarter 2008 -- a seven-quarter stretch. The combined occupancy and ADR gains pushed RevPAR up 8.4 percent -- the best quarterly growth the industry has recorded since second-quarter 2006. We anticipate continued but somewhat slower occupancy growth in the final quarter, while ADR should continue its positive momentum.”
Among the Top 25 Markets, New Orleans achieved the largest occupancy increase, rising 20.5 percent to 61.8 percent, followed by Detroit with an 18.6 percent increase to 61.2 percent. None of the top markets reported occupancy decreases for the third quarter. New York City was the only top market to report a double-digit ADR increase, rising 11.6 percent to $230.71.
Three other markets reported ADR increases of more than 5 percent: San Francisco/San Mateo, Calif. (up 7.2 percent to $142.82); Boston (up 5.6 percent to $144.86); and New Orleans (up 5.2 percent to $98.61). Nashville, Tenn., posted the largest ADR decrease, falling 4.1 percent to $82.86, followed by Detroit (down 2.3 percent to $74.79) and Houston (down 2.2 percent to $85.14).
Two markets experienced RevPAR increases of more than 15 percent -- New Orleans (up 26.8 percent to $60.97) and Detroit (up 15.9 percent to $45.80). Phoenix, Ariz., was the only market to report a RevPAR decrease, falling 0.8 percent to $35.07.
