The U.S. hotel industry reported mostly positive results in the three key performance metrics during May 2016, according to data from STR.
Compared with May 2015, the U.S. hotel industry’s occupancy dipped 0.5% to 67.0%. However, average daily rate for the month was up 2.4% to US$123.87, and revenue per available room grew 1.9% to US$83.01.
“The 5.0% RevPAR increase we saw last month appears to have been an outlier rather than a reversal of fortune,” said Patrick Mayock, STR’s senior director of research and development. “In May, growth slowed to 1.9%—the lowest of any month this year. And year-to-date RevPAR growth (+3.0%) is the lowest since the recovery started in 2010.
“On an absolute basis, however, the hotel industry is actually quite strong, with occupancy, ADR and RevPAR all reaching record highs for the May year-to-date period.”
Among the Top 25 Markets, Dallas, Texas, recorded the largest increase in occupancy (+5.3% to 73.3%) and the only double-digit lift in RevPAR (+12.9% to US$76.32). ADR in the market was up 7.2% to US$104.15.
Los Angeles/Long Beach, California, was the only Top 25 Market to post a double-digit rise in ADR (+10.1% to US$167.75).
Houston, Texas, reported the largest decreases in each of the three key performance metrics. Occupancy fell 8.2% to 65.4%; ADR was down 6.5% to US$113.45; and RevPAR dropped 14.2% to US$74.21.
Chicago, Illinois, was the only other market to experience a double-digit decline for any of the three metrics. RevPAR in the market fell 10.0% to US$115.21.
“As has been a common theme of late, the Top 25 Markets underperformed all other markets in May,” Mayock said. “However, Dallas once again emerged as a notable bright spot as the only market to report double-digit RevPAR growth.”
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.