The U.S. hotel industry reported positive results in the three key performance metrics during February 2014, according to data from STR.
Overall, the U.S. hotel industry’s occupancy was up 3.3 percent to 60.3 percent. Its average daily rate rose 3.9 percent to US$111.94, and revenue per available room increased 7.3 percent to US$67.49.
“February results were healthy,” said Jan Freitag, senior VP of strategic development at STR. “RevPAR increased 7.3 percent, driven primarily by a 3.9-percent increase in ADR. Last year in February ADR increased 4.5 percent. This year growth was lower, but nonetheless stronger than in January (+3.2 percent). Occupancy for the month was just over 60 percent, so hotels are reporting stronger occupancies again, and this goes hand in hand with some pricing power.
“Demand grew at a healthy clip of 4.5 percent, well above last year’s 2.4 percent growth, and that easy comparable probably contributed to the strong increase,” Freitag continued. “Year-to-date demand is up 3.9 percent, well above last year (+2.2 percent) and well above our expected 2014 demand growth number (+2.3 percent), so expect demand growth to slow as we hit summer.”
Among the Top 25 Markets, St. Louis, Missouri-Illinois, reported the only double-digit occupancy increase, rising 10.1 percent to 56.4 percent. Atlanta, Georgia, followed with a 9.3-percent increase to 67.2 percent. New York, New York, fell 3.1 percent in occupancy to 73.9 percent, posting the largest decrease in that metric.
San Francisco/San Mateo, California (+14.2 percent to US$186.92), and Nashville, Tennessee (+11.6 percent to US$109.22), achieved the largest ADR increases for the month.
Three markets reported RevPAR increases of more than 15 percent: San Francisco/San Mateo (+19.7 percent to US$149.30); Nashville (+18.7 percent to US$72.91); and St. Louis (+16.9 percent to US$50.45).
New Orleans, Louisiana, reported the largest decrease in both ADR (-16.7 percent to US$159.73) and RevPAR (18.9 percent to US$110.60).
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