The U.S. hotel industry reported positive results in the three key performance metrics during the third quarter of 2017, according to data from STR.
Compared with Q3 2016:
- Occupancy: +0.5% to 71.4%
- Average daily rate (ADR): +1.4% to US$129.12
- Revenue per available room (RevPAR): +1.9% to US$92.20
“The 71.4% occupancy level was the best for a third quarter since 1995,” said Bobby Bowers, STR’s senior VP of operations. “That was especially significant given that supply grew year over year at a higher rate than any quarter since Q2 2010. Demand (roomnights sold), at the same time, was up almost 8 million roomnights from the third quarter of last year. But even with solid demand, ADR growth was the worst since Q4 2010, and RevPAR grew at its lowest rate since Q1 2010.”
Among the Top 25 Markets, Houston, Texas, saw the quarter’s only double-digit increases in occupancy (+11.8% to 67.4%) and RevPAR (+16.4% to US$68.94).
Other top RevPAR increases were reported in Orlando, Florida (+9.6% to US$82.30); Tampa/St. Petersburg, Florida (+7.3% to US$78.96); Nashville, Tennessee (+7.0% to US$111.29); and Detroit, Michigan (+6.0% to US$74.49).
Nashville’s RevPAR growth was due to the quarter’s highest increase in ADR (+7.5% to US$143.28).
“The quarter contained a lot of moving parts with events such as the Great American Eclipse in August, the Jewish holiday calendar shift from October 2016 to September 2017 and the post-hurricane demand in Houston and around parts of Florida,” Bowers said. “That all happened after the quarter started with a significant Group business decline (July) due to the comparison with the Republican and Democratic national conventions in Cleveland and Philadelphia last year.”
Affected by the national convention comparison, Philadelphia, Pennsylvania-New Jersey, experienced the steepest decline in each of the three key performance metrics. Occupancy fell 6.3% to 72.0%, ADR was down 11.5% to US$126.41 and RevPAR dropped 17.0% to US$91.06.
New York, New York, posted the highest absolute values across the three key performance metrics: occupancy (90.4%), ADR (US$258.90) and RevPAR (US$234.10).
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.
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