The U.S. hotel industry reported positive results in the three key performance metrics during June 2018, according to data from STR.
In a year-over-year comparison with June 2017, the industry posted the following:
- Occupancy: +1.7% to 74.5%
- Average daily rate (ADR): +2.8% to US$132.66
- Revenue per available room (RevPAR): +4.6% to US$98.85
U.S. hotels have now posted 100 consecutive months of year-over-year RevPAR growth. Additionally, each of the key performance metrics are at record highs on a 12-month moving average.
“The industry’s 117 million room nights sold were the most we have ever recorded for a June,” said Jan Freitag, STR’s senior VP of lodging insights. “This drove the strongest year-over-year demand and occupancy increases of 2018. Even this far into the expansion cycle, brands and hoteliers were able to attract 4.2 million more guests than last June. This clearly points at very healthy group, business transient and leisure demand, supported by still undeterred GDP growth and low unemployment numbers.”
Orlando, Florida, registered the largest increases in each of the three key performance metrics: occupancy (+6.1% to 83.3%), ADR (+10.2% to US$127.86) and RevPAR (+16.9% to US$106.48).
Houston, Texas, experienced the second-highest jumps in occupancy (+6.0% to 65.0%) and RevPAR (+11.3% to US$66.92).
Miami/Hialeah, Florida, posted the second-largest lift in ADR (+6.3% to US$155.86).
Overall, 23 of the Top 25 Markets reported RevPAR growth.
New Orleans, Louisiana, reported the only decrease in ADR (-6.7% to US$134.44) and the largest decline in RevPAR (-5.5% to US$93.83).
Affected by significant supply growth, Seattle, Washington, experienced the steepest drop in occupancy (-2.0% to 86.0%) and the only other decrease in RevPAR (-0.9% to US$167.11).
“With summer in full swing, the Top 25 Markets were busy as well,” Freitag said. “In fact, seven of the markets saw occupancy at or above 85%, which is likely due to a confluence of meetings late in the meeting cycle in addition to the usual summer vacation demand
Tags: STR
