Market Report U.S.

US Hotel Industry Reports Another Record-Breaking Quarter During Q2 2018

Average daily rate increases 3.0 Percent to US$131.56
Hotel No Vacancy sign - Photo by KEEM IBARRA on Unsplash
US Hotel Industry Reports Another Record-Breaking Quarter During Q2 2018


The U.S. hotel industry experienced another record-breaking quarter during Q2 2018, according to data from STR.

Compared with Q2 2017:

• Occupancy: +1.1% to 70.2%
• Average daily rate (ADR): +2.9% to US$131.02
• Revenue per available room (RevPAR): +4.0% to US$91.94

Demand (room nights sold) grew 3.1% year over year, while supply (room nights available) increased 2.0% for the second-consecutive quarter. Overall, each of the key performance metrics were the highest for any Q2 on record.

“The second quarter of 2018 was another record-breaker as the industry rolled to 100 straight months of RevPAR growth,” said Bobby Bowers, STR’s senior VP of operations. “Even though there was a slight artificial lift from the Easter calendar shift at the beginning of the quarter, Q2 RevPAR growth accelerated from what we saw in Q1 (+3.5%). The industry continues to benefit from demand across the travel segments as well as favorable macroeconomic conditions.”

San Francisco/San Mateo, California, was the only Top 25 Market to show a double-digit increase RevPAR (+10.4% to US$203.84), due to the only double-digit jump in ADR (+10.1% to US$238.09). Bowers notes that the market’s performance has received a conference-related demand boost since the reopening of the Moscone Center.

Houston, Texas, saw the largest increase in occupancy (+4.4% to 65.6%) and the second-highest lift in RevPAR (+9.2% to US$71.05).

Miami/Hialeah, Florida, posted the second-largest increase in ADR (+5.6% to US$185.27) and the third-largest rise in RevPAR (+7.7% to US$143.22).

“The start of summer provided an added demand boost for the major markets,” Bowers said. “That influx of demand lifted hotelier pricing power, as ADR growth was 70 basis points higher in the major markets even with significantly more new rooms available.”

Boston, Massachusetts, reported the quarter’s largest decrease in RevPAR (-1.2% to US$173.04). Affected by supply growth, occupancy in the market fell 1.1% to 80.3%, and ADR was down 0.1% to US$215.61.

No other Top 25 Market saw a decrease in ADR for the quarter.

In absolute values, New York, New York, ranked first in occupancy (90.0%), ADR (US$273.67) and RevPAR (US$246.24).

STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit

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