U.S. Hotel Market Enjoys Performance Gains in July
According to STR, the U.S. hotel industry reported increases in all three key performance metrics during July 2012.
Overall, the U.S. hotel industry's occupancy rose 0.5 percent to 70.0 percent, its average daily rate was up 3.8 percent to US$107.44 and its revenue per available room increased 4.3 percent to US$75.25.
Demand during July increased 1.0 percent with 105,964,171 rooms sold, breaking the July 2011 record of 104,957,596 rooms sold.
"The industry sold more rooms in the month of July than in any other single month since STR began tracking industry performance in 1987," said STR's COO Brad Garner. "Record levels of demand will continue to stimulate ADR growth, particularly as group rooms sold firms in the historically heavy convention months of September, October and November. Discount-conditioned consumers will continue to experience a shift to a seller's market with magnitude likely accelerating in 2013."
Among the Top 25 Markets, New Orleans, Louisiana, rose 10.6 percent in occupancy to 68.0 percent, reporting the largest increase in that metric. Oahu Island, Hawaii, followed with a 10.3-percent occupancy increase to 91.8 percent. Phoenix, Arizona, fell 3.0 percent in occupancy to 46.5 percent, posting the largest decrease in that metric.
Four markets experienced double-digit ADR increases: Oahu Island (+15.8 percent to US$195.12); San Francisco/San Mateo, California (+11.9 percent to US$176.52); New Orleans (+11.0 percent to US$117.23); and Boston, Massachusetts (+10.8 percent to US$160.75). Phoenix ended the month with the largest ADR decrease, falling 1.3 percent to US$76.50.
Three markets achieved RevPAR increases of more than 15 percent: Oahu Island (+27.7 percent to US$179.20); New Orleans (+22.8 percent to US$79.72); and Houston (+16.0 percent to US$56.63). Phoenix fell 4.3 percent in RevPAR to US$35.60, reporting the largest decrease in that metric.