Compared with May 2015, the U.S. hotel industry’s occupancy dipped 0.5% to 67.0%. However, average daily rate for the month was up 2.4% to US$123.87, and revenue per available room grew 1.9% to US$83.01.
HENDERSONVILLE, Tennessee – The U.S. hotel industry reported mostly positive results in the three key performance metrics during May 2016, according to data from STR.
Compared with May 2015, the U.S. hotel industry’s occupancy dipped 0.5% to 67.0%. However, average daily rate for the month was up 2.4% to US$123.87, and revenue per available room grew 1.9% to US$83.01.
“The 5.0% RevPAR increase we saw last month appears to have been an outlier rather than a reversal of fortune,” said Patrick Mayock, STR’s senior director of research and development. “In May, growth slowed to 1.9%—the lowest of any month this year. And year-to-date RevPAR growth (+3.0%) is the lowest since the recovery started in 2010."
“On an absolute basis, however, the hotel industry is actually quite strong, with occupancy, ADR and RevPAR all reaching record highs for the May year-to-date period.”
Among the Top 25 Markets, Dallas, Texas, recorded the largest increase in occupancy (+5.3% to 73.3%) and the only double-digit lift in RevPAR (+12.9% to US$76.32). ADR in the market was up 7.2% to US$104.15.
Los Angeles/Long Beach, California, was the only Top 25 Market to post a double-digit rise in ADR (+10.1% to US$167.75).
Houston, Texas, reported the largest decreases in each of the three key performance metrics. Occupancy fell 8.2% to 65.4%; ADR was down 6.5% to US$113.45; and RevPAR dropped 14.2% to US$74.21.
Chicago, Illinois, was the only other market to experience a double-digit decline for any of the three metrics. RevPAR in the market fell 10.0% to US$115.21.
“As has been a common theme of late, the Top 25 Markets underperformed all other markets in May,” Mayock said. “However, Dallas once again emerged as a notable bright spot as the only market to report double-digit RevPAR growth.”
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.
