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U.S. Hotel Sector Delivers Positive Performance Results in Q2

U.S. Hotel Sector Delivers Positive Performance Results in Q2

Vacation News » Orlando Edition | By Michael Gerrity | July 22, 2016 8:00 AM ET



According to STR, the U.S. hotel industry reported positive results in the three key performance metrics for the second quarter of 2016.

Compared with Q2 2015, the U.S. hotel industry's occupancy was almost flat (+0.6% to 69.4%). Average daily rate was up 2.9% to US$124.47. Revenue per available room increased 3.5% to US$86.33.

Also during the second quarter, industry demand (+2.1%) outpaced supply (+1.5%).

"Demand and occupancy were the highest STR has ever recorded for a second quarter," said Bobby Bowers, STR's senior VP for operations. "At the same time, hoteliers did not appear to take advantage of that pricing power as the 2.9% increase in ADR was the lowest of any quarter since the fourth quarter of 2010. As a result, the 3.5% lift in RevPAR was the lowest for a second quarter since 2009."

Three Top 25 Markets experienced a double-digit lift in RevPAR for the quarter: Dallas, Texas (+12.1% to US$80.64); Los Angeles/Long Beach, California (+11.1% to US$140.60); and Nashville, Tennessee (+10.6% to US$115.28).

Los Angeles/Long Beach posted the largest rise in ADR, up 9.4% to US$171.05.

Phoenix, Arizona (+5.9% to 67.6%), saw the largest increase in occupancy, followed by Dallas (+5.7% to 76.9%).

Houston, Texas, experienced the steepest declines in occupancy (-6.9% to 66.2%) and RevPAR (-8.0% to US$73.29).

New York, New York, reported the largest drop in ADR, down 3.1% to US$268.39.

"Despite the decrease, New York's absolute value for ADR was the highest of any of the Top 25 Markets," Bowers said. "The same was true for occupancy (88.2%) in the market."


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