The U.S. hotel industry reported increases in all three key performance metrics during the third quarter of 2013 in year-over-year measurements, according to data from STR.
The industry’s occupancy increased 1.4 percent to 67.9 percent; its average daily rate rose 4.0 percent to $111.88; and its revenue per available room was up 5.5 percent to $75.97.
“As expected, quarterly RevPAR results mirrored the last two quarters of 2013,” said Jan Freitag, senior VP of strategic development at STR. “Third-quarter demand growth of 2.1 percent increased very slightly from the second-quarter growth rate of 2.0 percent. At the same time, supply growth, which was expected to increase sequentially throughout the year, increased only at the same rate of the prior two quarters, 0.7 percent. This continued lack of supply growth acceleration then resulted in sustained occupancy increases for the quarter.”
Among the Top 25 Markets, Nashville, Tennessee, rose 8.5 percent in occupancy to 72.0 percent, reporting the largest increase in that metric. Denver, Colorado, followed with a 7.1-percent increase to 82.6 percent. New Orleans, Louisiana, fell 9.6 percent to 59.0 percent in occupancy, posting the largest decrease in that metric.
Three markets experienced ADR growth of 10 percent or more: Oahu Island, Hawaii (+13.3 percent to US$216.27); San Francisco/San Mateo, California (+11.6 percent to US$204.90); and Houston, Texas (+10.0 percent to US$98.70). Tampa-St. Petersburg, Florida, fell 7.5 percent to US$92.60 in ADR, ending the quarter with the largest decrease in that metric.
Click here to read more.