U.S. Hotel Sector Enjoys 5.7% Occupancy Rate Increase in Q-1, Room Rates Up 3%

U.S. Hotel Sector Enjoys 5.7% Occupancy Rate Increase in Q-1, Room Rates Up 3%

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | April 27, 2011 8:15 AM ET

Based on a new report from STR, the U.S. hotel industry reported increases in all three key performance metrics for first-quarter 2011 in year-over-year measurements.

The industry's occupancy increased 5.7 percent to 54.9 percent, average daily rate rose 3.1 percent to US$99.37, and revenue per available room was up 9.0 percent to US$54.56.

"The industry's upward momentum continued in the first three months of 2011 with the strongest quarterly RevPAR growth since first-quarter 2006," said Bobby Bowers, senior VP at STR. "Supply growth continued its downward trajectory, demand growth remained healthy and ADR accounted for a greater percentage of the quarter's RevPAR increase. This marks the industry's fourth consecutive quarterly RevPAR gain, and we expect positive news will continue as 2011 unfolds."

Among the Top 25 Markets, Detroit, Michigan, was the only market to report a double-digit occupancy increase, rising 13.7 percent to 54.0 percent. New York, New York, fell 2.6 percent in occupancy to 70.1 percent, reporting the only occupancy decrease.

San Francisco/San Mateo, California, experienced the largest ADR increase, rising 13.0 percent to US$143.29, followed by Oahu Island, Hawaii, with a 10.1-percent increase to US$160.10. Norfolk-Virginia Beach, Virginia (-2.9 percent to US$70.40), and Atlanta, Georgia (-2.0 percent to US$83.69), reported the largest ADR decreases for the quarter.

Four markets achieved RevPAR increases of more than 15 percent: San Francisco/San Mateo (+22.1 percent to US$100.52); Dallas, Texas (+19.8 percent to US$55.01); Oahu Island (+19.1 percent to US$131.58); and Detroit (+16.0 percent to US$41.39).


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