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.
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