STR: U.S. hotel performance for April 2018

STR: U.S. hotel performance for April 2018

STR: U.S. hotel performance for April 2018

STR: U.S. hotel performance for April 2018

The U.S. hotel industry reported positive results in the three key performance metrics during April 2018, according to data from STR

In a year-over-year comparison with April 2017, the industry posted the following:

  • Occupancy: +0.9 percent to 67.9 percent
  • Average daily rate (ADR): +3.3 percent to US$130.33
  • Revenue per available room (RevPAR): +4.2 percent to US$88.54

The increase in ADR was the largest for any month since January 2017, and the industry has now posted 98 consecutive months of RevPAR growth year over year. 

“The industry once again set a record for monthly performance and performance on an annualized basis,” said Bobby Bowers, STR’s senior VP of operations. “Helped by the favorable side of the Easter calendar shift from April last year to March this year, the RevPAR growth figure was actually the highest of any month in 2018 and the second-highest overall since last March. A surge in group business from the aforementioned calendar shift factored significantly into the equation, but we also continue to see strong growth in weekend business, which indicates solid consumer confidence in addition to robust business demand.”

Two of the Top 25 Markets tied for the largest increase in RevPAR: San Francisco/San Mateo, California (+19.2 percent to US$204.76), and New Orleans, Louisiana (+19.2 percent to US$137.91). 

The RevPAR increase in San Francisco was driven mostly by the month’s largest lift in ADR (+17.7 percent to US$241.41), while RevPAR in New Orleans was helped by the highest rise in occupancy (+7.7 percent to 78.9 percent). 
 
Houston, Texas, reported the next-largest increase in RevPAR (+14.0 percent to US$76.62).  

Denver, Colorado, experienced the second-highest increase in occupancy (+6.6 percent to 73.6 percent) and the only other double-digit rise in RevPAR (+11.3 percent to US$94.38).    

Overall, 20 of the Top 25 Markets reported RevPAR growth.  

Orlando, Florida, experienced the steepest decline in occupancy (-5.3 percent to 80.6 percent). 

Norfolk/Virginia Beach, Virginia, reported the largest drop in ADR (-1.6 percent to US$93.52).

St. Louis, Missouri-Illinois, registered the largest decrease in RevPAR (-5.2 percent to US$70.38). 

“The major markets (RevPAR: +4.4 percent) outperformed all others (+3.9 percent) again in April, mainly due to rate increases and the group business shift from March,” Bowers said. “That performance of course comes with supply growth almost 100 basis points higher in the Top 25.”

Source = STR
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