The U.S. hotel industry reported positive results in the three key performance metrics during December 2019, according to data from STR.
In a year-over-year comparison with December 2018, the industry posted the following:
Occupancy: +0.6% to 54.4%
Average daily rate (ADR): +2.0% to US$126.84
Revenue per available room (RevPAR): +2.6% to US$69.00
The year went out with a bang, so to speak, as Decembers RevPAR increase matched February for the highest of 2019, said Jan Freitag, STRs senior VP of lodging insights. The ADR increase of 2.0% was the highest rate of change in the past 14 months, and occupancy increased 0.6%, driven up by healthy room demand growth of 2.8%. Part of the outperformance can be attributed to the group segment with increases of 6.6% and 4.2% in occupancy and ADR, respectively.
The overall performance provided a bit of a lift to the total-year numbers but not a significant change overall. Each of the key performance metrics are at an all-time high, but we're not forecasting much of a shift away from an environment of slow to no growth that has developed over the last year-plus.
Among the Top 25 Markets, Chicago, Illinois, recorded the highest rise in occupancy (+7.3% to 56.6%), the only double-digit lift in ADR (+10.4% to US$122.48) and the largest spike in RevPAR (+18.4% to US$69.30).
Phoenix, Arizona, saw the second-largest jumps in occupancy (+6.1% to 63.4%) and RevPAR (+13.0% to US$74.14).
San Francisco/San Mateo, California, posted the second-largest lift in ADR (+7.0% to US$204.62) and the only other double-digit rise in RevPAR (+10.0% to US$147.89).
Overall, 20 of the Top 25 Markets recorded a RevPAR increase.
San Diego, California, reported the steepest decline in each of the three key performance metrics: occupancy (-6.3% to 62.7%), ADR (-5.4% to US$135.50) and RevPAR (-11.4% to US$85.01).
Nashville, Tennessee, registered the second-largest drops in occupancy (-2.3% to 57.4%) and RevPAR (-3.3% to US$74.28).
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 str.com.
Logos, product and company names mentioned are the property of their respective owners.