U.S. Hotels Post Mixed Results in Early May

U.S. Hotels Post Mixed Results in Early May

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | May 17, 2010 9:00 AM ET

According to data from Smith Travel Research, the U.S. hotel industry reported mixed results in the three key performance measurements during the week of 2-8 May 2010.

In year-over-year measurements, the industry's occupancy increased 6.4 percent to 57.0 percent. Average daily rate ended the week virtually flat with a 0.8-percent decrease to US$97.08. Revenue per available room rose 5.6 percent to US$55.30.

Among the Top 25 Markets, New Orleans, Louisiana, which hosted various events in the past weeks, reported the largest increases in all three key metrics for the third consecutive week. The market's occupancy during the week ending 8 May rose 26.2 percent to 73.1 percent, ADR was up 27.6 percent to US$143.11, and RevPAR jumped 61.1 percent to US$104.60.

Three markets, other than New Orleans, posted occupancy increases of 15 percent or more: Detroit, Michigan (+16.0 to 52.6 percent); Nashville, Tennessee (+15.5 percent to 65.2 percent); and Anaheim-Santa Ana, California (+15.1 percent to 63.4 percent). Two of the Top 25 Markets experienced occupancy decreases: Norfolk-Virginia Beach, Virginia (-2.8 percent to 53.4 percent), and Oahu Island, Hawaii (-0.9 percent to 68.6. percent). New York, New York, reported the highest occupancy rate, ended the week with 86.8 percent occupancy.

Excluding New Orleans, New York was the only market to report an ADR increase of more than 5 percent, rising 9.7 percent to US$228.44. Nashville, Tennessee, which experienced flooding due to torrential rains on 1-2 May, reported the largest ADR decrease, falling 18.8 percent to US$82.50, followed by Chicago, Illinois (-9.7 percent to US$114.20), Seattle, Washington (-7.3 to US$107.10), and Orlando, Florida (6.1 percent to US$92.00).

Four markets, not including New Orleans, experienced RevPAR increases of more than 15 percent: New York (+21.3 percent to US$198.31); Philadelphia, Pennsylvania-New Jersey (+18.7 percent to US$80.45); Dallas (+17.4 percent to US$45.76); and Atlanta, Georgia (+17.3 percent to US$48.06). Nashville posted the largest RevPAR decrease, falling 6.3 percent to US$53.76, followed by Norfolk-Virginia Beach (-5.2 percent to US$43.14) and St. Louis (-5.0 percent to US$43.66).


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