All Top 25 Markets, except Oahu Island, Hawaii (-0.6 percent to 81.5 percent), reported occupancy growth. Atlanta, Georgia (+8.0 percent to 70.9 percent), and Tampa/St. Petersburg, Florida (+7.9 percent to 70.3 percent), reported the largest occupancy increases.
HENDERSONVILLE, TENNESSEE – The U.S. hotel industry reported increases in all three key performance metrics for the second quarter 2014 in year-over-year measurements, according to data from STR.
The industry’s occupancy increased 3.6 percent to 68.1 percent; average daily rate rose 4.4 percent to US$115.46; and revenue per available room was up 8.2 percent to US$78.59. Demand increased 4.5 percent during the second quarter, while supply was up 0.8 percent.
“The second quarter RevPAR results were the highest quarterly growth rate since the beginning of 2011,” said Jan Freitag, senior VP of strategic development at STR. “A favorable Easter calendar shift aided results, but favorable supply and demand fundamentals continue to allow hoteliers to increase occupancy and ADR. We are especially pleased to report that group occupancy grew 1.8 percent for the quarter, signaling that this side of the room demand equation is also returning to normal. RevPAR for the Top 25 Markets RevPAR grew 8.6 percent, once again outperforming the nation, and we expect this trend to hold throughout the summer.”
All Top 25 Markets, except Oahu Island, Hawaii (-0.6 percent to 81.5 percent), reported occupancy growth. Atlanta, Georgia (+8.0 percent to 70.9 percent), and Tampa/St. Petersburg, Florida (+7.9 percent to 70.3 percent), reported the largest occupancy increases.
Two markets reported double-digit ADR growth: Nashville, Tennessee (+14.9 percent to US$120.62), and San Francisco/San Mateo, California (+10.7 percent to US$202.62). Philadelphia, Pennsylvania-New Jersey (-1.7 percent to US$128.22), and Washington, D.C. (-0.9 percent to US$153.24), reported the only ADR decreases for the quarter.
Nashville rose 19.8 percent to US$93.27 in RevPAR, reporting the largest increase in that metric, followed by Tampa/St. Petersburg (+17.0 percent to US$77.42) and Boston, Massachusetts (+12.8 percent to US$154.62). Philadelphia experienced the only RevPAR decrease, falling 1.6 percent to US$93.24.
Americas hotel results for YTD June 2014
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars year-to-date June 2014. Compared to YTD June 2013, the Americas region reported a 3.2-percent increase in occupancy to 63.6 percent, a 3.7-percent increase in average daily rate to US$116.43 and a 7.0-percent increase in revenue per available room to US$74.09.
In June 2014, the region’s occupancy rose 2.7 percent to 71.2 percent, its ADR increased 4.7 percent to US$118.63, and its RevPAR was up 7.6 percent to US$84.46.
Among the key markets in the region, Rio de Janeiro, Brazil, reported the largest increase in occupancy during June, rising 12.3 percent to 82.2 percent. The market was one of the host cities of the 2014 FIFA World Cup, which was held 12 June to 13 July, 2014. Santiago, Chile (-15.1 percent to 54.6 percent) and Sao Paulo, Brazil (-10.5 percent to 62.4 percent), reported the largest occupancy decreases.
Three markets achieved double-digit ADR increases: Rio de Janeiro (+77.9 percent to US$392.82); Sao Paulo (+49.5 percent to US$212.84); and San Francisco, California (+12.9 percent to US$213.54). Panama City, Panama, fell 4.2 percent in ADR to US$105.60, posting the largest decrease in that metric.
Rio de Janeiro jumped 99.7 percent in RevPAR to US$322.92, experiencing the largest increase in that metric, followed by Sao Paulo (+33.7 percent to US$132.80) and Toronto (+14.5 percent to US$113.52). Santiago (-13.1 percent to US$86.86) and Panama City (-12.2 percent to US$45.14) reported the largest RevPAR decreases in June.
Photo caption: The Westin Lagunamar Ocean Resort Villas & Spa, Cancun.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
