U.S. Hotel Sector Performs Well in Late August

U.S. Hotel Sector Performs Well in Late August

Vacation News » Vacation & Leisure Real Estate Edition | By David Barley | September 6, 2011 10:30 AM ET

According to STR, the U.S. hotel industry experienced increases in all three key performance metrics during the week ending August 27, 2011.

In year-over-year comparisons for the week, occupancy rose 4.5 percent to 62.8 percent, average daily rate increased 3.2 percent to US$99.79, and revenue per available room finished the week up 7.8 percent to US$62.63.

"Overall the national numbers were strong, but they were pulled down in a few key markets by the impact of Hurricane Irene," said Carter Wilson, director of STR Analytics. "The Washington, D.C., and Norfolk-Virginia Beach hotel markets appear the most affected by the storm. We will continue to assess the impact of the storm-affected and outlying areas over the coming weeks."

Among the Top 25 Markets, Tampa-St. Petersburg, Florida, jumped 24.3 percent in occupancy to 59.7 percent. Four other markets reported double-digit occupancy increases: Minneapolis-St. Paul, Minnesota-Wisconsin (+13.3 percent to 82.1 percent); Nashville, Tennessee (+11.1 percent to 61.8 percent); Dallas, Texas (+10.5 percent to 55.8 percent); and St. Louis, Missouri-Illinois (+10.5 percent to 58.4 percent). Washington, D.C., fell 12.5 percent in occupancy, reporting the largest decrease in that metric, followed by Norfolk-Virginia Beach, Virginia, with an 8.2-percent decrease to 58.8 percent.

Nashville rose 16.6 percent in ADR to US$95.91, reporting the largest increase in that metric, followed by San Francisco/San Mateo, California, with a 16.1-percent increase to US$151.16. Washington, D.C. (-3.3 percent to US$124.08), and Norfolk-Virginia Beach (-2.9 percent to US$95.59), reported the largest ADR decreases for the week.

Four markets experienced RevPAR increases of more than 20 percent: Tampa-St. Petersburg (+37.3 percent to US$53.26); Nashville (+29.5 percent to US$59.23); San Francisco/San Mateo (+24.1 percent to US$131.72); and Minneapolis-St. Paul (+21.7 percent to US$82.77). Two markets posted double-digit RevPAR decreases: Washington, D.C. (-15.4 percent to US$79.80) and Norfolk-Virginia Beach (-10.9 percent to US$56.24).

Real Estate Listings Showcase

This website uses cookies to improve user experience. By using our website you consent in accordance with our Cookie Policy. Read More