U.S. Hotel Market Continues to Enjoy Performance Gains in July

U.S. Hotel Market Continues to Enjoy Performance Gains in July

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | August 23, 2010 10:15 AM ET

According to the latest report from Smith Travel Research (STR), the U.S. hotel industry posted increases in all three key performance measurements during July 2010.

In year-over-year measurements, the industry's occupancy was up 7.0 percent to 67.9 percent. Average daily rate ended the month with a 1.3-percent increase to US$99.14. Revenue per available room for the month rose 8.5 percent to finish at US$67.35.

"The U.S. hotel industry's performance recovery continued very nicely in July," said Mark Lomanno, president of STR. "The demand for rooms continued to be well above 2009 levels, and we are finally beginning to see signs of room rate recovery, especially in the higher end of the market. In the coming months, we hope to see more balanced RevPAR growth as operators begin to accelerate room rate growth."

Among the Top 25 Markets, all but one market reported occupancy increases and 8 top markets reported double-digit increases. Detroit, Michigan, led the occupancy increases, rising 20.9 percent to 61.5 percent, followed by Oahu Island, Hawaii (+15.9 percent to 89.6 percent), and New Orleans, Louisiana (+13.1 percent to 72.6 percent). Phoenix, Arizona, posted the only occupancy decrease, falling 1.4 percent to 43.6 percent.

New York, New York, achieved the highest and only double-digit ADR increase, rising 11.6 percent to US$204.68. Dallas, Texas, reported the largest ADR decrease, falling 4.1 percent to US$77.72, followed by Nashville, Tennessee (-3.3 percent to US$82.94), and Houston, Texas (-3.2 percent to US$83.12).

Five top markets experienced RevPAR increases of more than 15 percent: Oahu Island (+20.8 percent to US$139.58); New Orleans (+17.9 percent to US$77.82); Detroit (+17.7 percent to US$45.57); New York (+16.3 percent to US$170.67); and Denver, Colorado (+15.6 percent to US$74.03). Phoenix posted the largest RevPAR decrease, falling 4.2 percent to US$31.91, followed by Houston with a 1.7-percent decrease to US$46.03.

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