Positive YOY Results for US Hotel Industry for October 2017
During October, the U.S. hotel industry reported occupancy rose 1.6% year over year to 69.6%, ADR increased 2.5% to $130.20 and RevPAR jumped 4.1% to $90.56.
The U.S. hotel industry reported positive results in the three key performance metrics during October 2017, according to data from STR.
In a year-over-year comparison with October 2016, the industry posted the following:
- Occupancy: +1.6% to 69.6%
- Average daily rate (ADR): +2.5% to US$130.20
- Revenue per available room (RevPAR): +4.1% to US$90.56
“The 69.6% occupancy level was the highest for any October on record,” said Jan Freitag, STR’s senior VP for lodging insights. “This also was the third straight month with a monthly occupancy record, and annual occupancy continues to reach all-time highs. However, similar to most months in 2017, rate growth was well below the monthly average. Regardless, the 4.1% lift in RevPAR was the second-highest this year, no doubt helped by favorable comparisons with the Jewish holiday month last year.”
Freitag also noted that RevPAR has now increased year over year for 92 consecutive months in the U.S.
Among the Top 25 Markets, Houston, Texas, reported the largest increase in each of the three key performance metrics: occupancy (+32.6% to 83.8%), ADR (+11.7% to US$116.92) and RevPAR (+48.1% to US$98.01).
Two additional Top 25 Markets reported double-digit increases in RevPAR: Miami/Hialeah, Florida (+13.3% to US$120.79), and Orlando, Florida (+12.2% to US$97.49). RevPAR growth in Miami/Hialeah was driven by the only other double-digit increase in occupancy (+11.3% to 74.6%).
“This was the first month in quite some time where RevPAR growth was higher in the Top 25 Markets than all others,” Freitag said. “Post-hurricane demand, especially in Houston, played a role in the numbers in addition to stronger group demand from the Jewish holiday calendar shift.”
Minneapolis/St. Paul, Minnesota-Wisconsin, reported the only double-digit decline in RevPAR (-10.4% to US$89.18), due primarily to the largest decrease in ADR (-6.5% to US$123.20). Occupancy in the market fell 4.2% to 72.4%. According to STR analysts, declines in the market’s performance were due to a comparison with a stronger events and group business month in 2016.
New Orleans, Louisiana, experienced the largest decrease in occupancy (-9.7% to 69.8%) and the second-largest drop in RevPAR (-9.1% to US$112.71).
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.
Categories: Market Reports