Positive Performance Metrics for US Hotel Industry for First Quarter 2017
In the first quarter of 2017, the U.S. hotel industry reported occupancy increased 0.9% to 61.1%, ADR rose 2.5% to $124.27 and RevPAR jumped 3.4% to $75.92.
The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the first quarter of 2017, according to data from STR.
Compared with Q1 2016:
- Occupancy: +0.9% to 61.1%
- Average daily rate (ADR): +2.5% to US$124.27
- Revenue per available room (RevPAR): +3.4% to US$75.92
“This was the strongest first quarter on record in each of the performance metrics, but it is important to note that results were boosted by a favorable Easter calendar shift (March 2016 to April 2017) as well as the Presidential Inauguration and Women’s March in January,” said Bobby Bowers, STR’s senior VP of operations. “Supply growth for the quarter was 1.9%, which was the highest for any quarter since Q2 2010. So as demand growth becomes more moderate, occupancy will decline, placing further pressure on pricing power. At any rate, muted ADR growth will continue to push modest RevPAR growth for the foreseeable future.”
Among the Top 25 Markets, Washington, D.C.-Maryland-Virginia, saw the quarter’s only double-digit increase in RevPAR (+16.1% to US$107.93). Growth was driven primarily by the only double-digit lift in ADR (+13.6% to US$165.94). Occupancy growth in the market was more moderate (+2.2% to 65.0%).
Other top RevPAR increases were reported in Detroit, Michigan (+9.8% to US$63.20); Seattle, Washington (+9.2% to US$96.62); and New Orleans, Louisiana (+8.0% to US$118.90).
Top occupancy growth was reported in Norfolk/Virginia Beach, Virginia (+6.2% to 50.9%); Seattle (+5.4% to 71.4%) and Detroit (+5.4% to 62.3%).
Miami/Hialeah, Florida, experienced the steepest decline in RevPAR (-8.5% to US$186.36) thanks to the largest drop in ADR (-7.5% to US$227.37). Miami’s absolute value for RevPAR was still the highest among Top 25 Markets.
“Demand (rooms sold) was up in Miami, but supply was almost 5% higher than the first quarter of last year, placing obvious pressure on occupancy and ADR,” Bowers said.
Even while hosting Super Bowl LI, Houston, Texas, saw the quarter’s largest decrease in occupancy (-3.2% to 63.7%).
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.
Categories: Hotel Industry News