Market Reports

STR reports U.S. hotel performance for the week ending 27 December 2008

The U.S. hotel industry experienced steep declines in three key performance measurements during the week of 21-27 December 2008, according to data from STR.

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In year-over-year measurements, the industry's occupancy fell 16.4 percent to end the week at 35.8 percent (42.8 percent during the comparable week in 2007). Average daily rate dropped 9.5 percent to finish the week at US$92.49 (US$102.22 in 2007). Revenue per available room for the week decreased 24.3 percent to finish at US$33.13 (US$43.78 in 2007).

Performances within the seven chain-scale segments were off across the board:

Luxury segment: Occupancy -24.4 percent to 40.5 percent, ADR -14.5 percent to US$310.83, and RevPAR -35.4 percent to US$125.98.

Upper Upscale segment: Occupancy -19.6 percent to 34.6 percent, ADR -11.6 percent to US$128.53, and RevPAR -28.9 percent to US$44.47.

Upscale segment: Occupancy -15.0 percent to 34.9 percent, ADR -8.0 percent to US$95.46, and RevPAR -21.7 percent to US$33.27.

Midscale with Food-and-Beverage segment: Occupancy -17.7 percent to 31.5 percent, ADR -4.1 percent to US$77.64, and RevPAR -21.1 percent to US$24.42.

Midscale without Food-and-Beverage segment: Occupancy -16.0 percent to 34.6 percent, ADR -3.7 percent to US$78.07, and RevPAR -19.1 percent to US$27.00.

Economy segment: Occupancy -11.2 percent to 36.8 percent, ADR -3.3 percent to US$50.72, and RevPAR -14.1 percent to US$18.65.

Independents segment: Occupancy -17.2 percent to 38.0 percent, ADR -10.0 percent to US$95.60, and RevPAR -25.5 percent to US$36.31.


Among Top 25 Markets, Houston, Texas, was the only market to achieve growth in all three measurements, as its occupancy rose 1.2 percent to 35.9 percent, its ADR increased 10.2 percent to US$78.86 and its RevPAR jumped 11.6 percent to US$28.34. Houston's performance is largely attributed to the influx of first responders, insurance agents and construction workers following Hurricane Ike's landfall in September.

Many Top 25 Markets experienced difficult weeks:

Three of the markets experienced occupancy rate drops of more than 20 percent: Phoenix, Arizona, -27.5 percent, San Diego, California, -24.4 percent, and Chicago, Illinois, -20.3 percent.

Five of the markets watched ADR drops of more than 15 percent: Oahu Island, Hawaii,-17.3 percent, Miami-Hialeah, Florida, -17.0 percent, Phoenix, -16.0 percent, New York, New York, -15.3 percent, and Orlando, Florida, -15.2 percent. Besides Houston,
St. Louis, Missouri, was the only other Top 25 Market to see year-over-year ADR growth for the week (+0.1 percent).

Three of the Top 25 Markets watched as RevPAR declined more than 30 percent for the week: Phoenix, -39.1 percent, San Diego, -33.5 percent, and Miami-Hialeah, -31.7 percent.

The week's results likely were skewed somewhat by the day on which Christmas fell. This year, Christmas fell on a Thursday, while in 2007 it fell on a Tuesday.

About STR & STR Global
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 or

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