The U.S. hotel industry reported positive results in the three key performance metrics during May 2014, according to data from STR.
Overall, the U.S. hotel industry's occupancy was up 4.9 percent to 67.0 percent; its average daily rate rose 4.8 percent to US$115.35; and its revenue per available room increased 10.0 percent to US$77.27.
"U.S. hotels reported the highest RevPAR on record this month," said Jan Freitag, senior VP of strategic development at STR. "Demand this month grew 5.9 percent; we haven't seen demand increases like this since September 2011. With supply growth still muted (+0.9 percent), absolute occupancy increased 4.9 percent to 67.0 percent. While the industry continues to beat last year's occupancies, it is doing so at an accelerated pace. Group demand increased 10.4 percent in May, and we expect this positive momentum to continue through the summer.
"Similar to April, higher-end hotels, including the Luxury, Upper Upscale and Upscale segments, reported occupancies of more than 75.0 percent in May," Freitag continued. "The Economy segment surprisingly reported the highest RevPAR growth among the segments, rising 10.6 percent, driven by a 5.4-percent occupancy increase."
Among the Top 25 Markets, Atlanta, Georgia, reported the largest occupancy increase, rising 12.6 percent to 70.2 percent. Tampa/St. Petersburg, Florida, followed with an 8.8-percent increase to 68.4 percent.
Three markets saw double-digit ADR growth: Nashville, Tennessee (+13.4 percent to US$115.74); San Francisco/San Mateo, California (+13.4 percent to US$203.18); and Houston, Texas (+10.0 percent to US$124.77). Philadelphia, Pennsylvania-New Jersey (-3.9 percent to US$128.11), and Dallas, Texas (-0.2 percent to US$92.35), reported the only ADR decreases for the month.
Five markets experienced RevPAR increases of 15.0 percent or more: Atlanta (+21.2 percent to US$63.11); Nashville (+17.1 percent to US$86.51); Tampa/St. Petersburg (+17.1 percent to US$72.60); Houston (+15.8 percent to US$94.48); and Boston, Massachusetts (+15.0 percent to US$154.92). Philadelphia fell 3.6 percent in RevPAR to US$91.78, posting the only decrease in that metric.
Logos, product and company names mentioned are the property of their respective owners.