STR reports U.S. hotel performance for the week ending 20 December 2008
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The results mark the first time in four weeks that occupancy, average daily rate and revenue per available room saw positive growth.
In year-over-year measurements, the industry's occupancy rose 2.0 percent to 42.9 percent (up from 42.0 percent during the comparable week in 2007). ADR saw a modest boost from US$91.89 in 2007 to US$92.44, an increase of 0.6 percent. RevPAR for the week increased 2.6 percent to US$39.61 (US$38.61 in 2007).
Despite these average weekly increases, each chain-scale segment did not post positive results in each of the three performance metrics. The hardest hit was the Luxury segment, which experienced a 4.5-percent decline in occupancy (42.3 percent), a 12.2-percent drop in ADR (US$257.64) and a 16.1-percent decrease in RevPAR (US$108.94). The Economy segment also saw losses, with a 4.0-percent decrease in occupancy (41.4 percent) and a 4.0-percent decrease in RevPAR (US$20.82). Its ADR growth was flat.
Both the Midscale with Food and Beverage segment and the Midscale without Food and Beverage segment posted positive growth in all three performance metrics. Midscale with Food and Beverage saw increases of 0.8 percent in occupancy (38.2 percent), 3.0 percent in ADR (US$79.43) and 3.8 percent in RevPAR (US$30.32). The Midscale without Food and Beverage segment experienced increases of 1.9 percent in occupancy (45.6 percent), 2.5 percent in ADR (US$84.02) and 4.5 percent in RevPAR (US$38.27).
'Weekly performance metrics and travel in general were fairly robust heading into the Hanukkah and Christmas holidays,' said Brad Garner, vice president of operations/client services at STR. 'They appear to be an early present for the U.S. hotel industry.
'While the outlook for the first six months of 2009 is not favorable, we still remain optimistic that performance will pick up in the second half of the year.'
The Top 25 Market that performed the strongest was Houston, Texas, which saw a 32.5-percent increase in occupancy (59.9 percent), a 16.3-percent rise in ADR (US$96.26) and a 54.2-percent boost in RevPAR (US$57.62). Miami-Hialeah, Florida posted the largest decreases for the week, with a 6.8-percent drop in occupancy (55.6 percent), a 10.6-percent decrease in ADR (US$129.34) and a 16.7-percent drop-off in RevPAR (US$71.93)
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For more than 20 years, Smith Travel Research has been the recognized leader for lodging industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 36,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tenn., and STR Global is based in London. For more information, visit www.smithtravelresearch.com or www.strglobal.com.
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