Second Quarter And First Half 2007 Results For The U.S. Lodging Industry

Industry occupancy reached 66.8 percent in the three months ending June 2007, up 0.4 percent versus second quarter 2006. Second quarter average room rate gained 5.4 percent to $103.07 and revenue per available room (REVPAR) - the combination of occupancy and average room rate and a key industry productivity measure - increased 5.7 percent to $68.90.

In the first half of 2007, industry occupancy slipped 0.2 percent to 63.2 percent versus same period prior year. Average room rate was up 5.7 percent to $102.95 and REVPAR gained 5.5 percent to $65.09. First half industry room supply increased 1.1 percent while demand (room nights sold) grew 0.9 percent. Room revenue grew 6.7 percent in the first six months of 2007 to $52 billion.

In the month of June 2007, occupancy increased 1.3 percent to 71.5 percent while average room rate improved 5.4 percent to $103.24. June REVPAR gained 6.8 percent to $73.79.

'First half industry performance was basically in line with expectations,' said Mark Lomanno, President of Smith Travel Research. 'Year-over-year comparisons will be easier in the second half and economic forecasts are generally calling for marginal improvement over the balance of 2007. We believe full year 2007 RevPar growth will fall in the 5 - 5.5 percent range', Lomanno added.

Smith Travel Research - the recognized leader in lodging industry tracking and analysis - provides regular industry reporting to all major North American chains. The company recently purchased a minority interest in The Bench, a London-based company, to build its hotel benchmarking efforts outside North America.

Click here ( Adobe Acrobat PDF file) to download the 2nd Quarter Review.

Logos, product and company names mentioned are the property of their respective owners.

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