Among the Top 25 Markets, Phoenix, Arizona, reported the only double-digit jump in RevPAR (+11.2% to US$56.45), due to the highest rises in occupancy (+6.3% to 63.4%) and ADR (+4.6% to US$89.05).
HENDERSONVILLE, TENNESSEE — The U.S. hotel industry reported mostly positive results in the three key performance metrics during August 2019, according to data from STR.
In a year-over-year comparison with August 2018, the industry posted the following:
- Occupancy: flat at 71.4%
- Average daily rate (ADR): +0.9% to US$132.47
- Revenue per available room (RevPAR): +0.9% to US$94.55
“Even though room demand was once again strong with 2 million more room nights sold than last August, occupancy was flat when compared with last year,” said Jan Freitag, STR’s senior VP of lodging insights. “As supply and demand growth are basically in equilibrium, all RevPAR growth stems from ADR, and that growth rate has been lackluster. Over the first eight months of the year, ADR growth has been below or just at the level of inflation, which creates quite a bit of pressure on profit margins. This is a trend we’ve seen across chain scales and classes, and we do not expect the fundamentals to change much moving forward.”
The industry’s current expansion cycle has reached 114 months (March 2010-present) with year-over-year RevPAR increases in 112. The only decreases during this run came in September 2018 (-0.3%) and June 2019 (-0.4%). The previous long growth cycle in U.S. history lasted 112 months (December 1991-March 2001) with one decrease (-0.4%) in August 1998.
Among the Top 25 Markets, Phoenix, Arizona, reported the only double-digit jump in RevPAR (+11.2% to US$56.45), due to the highest rises in occupancy (+6.3% to 63.4%) and ADR (+4.6% to US$89.05).
Oahu Island, Hawaii, registered the second-largest increases in occupancy (+5.0% to 88.8%) and RevPAR (+6.5% to US$226.73).
Orlando, Florida, experienced the largest decrease in occupancy (-3.1% to 68.9%).
Seattle, Washington, saw the steepest declines in ADR (-6.5% to US$188.56) and RevPAR (-9.3% to US$159.71).
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.
