U.S. HOTELS’ ADR and RevPAR saw some fast growth in the second quarter, according to CBRE Hotels Americas Research. Demand grew as well, while supply remained steady.
ADR in Q2 grew 2.9 percent, the fastest growth rate since 2016’s third quarter. RevPAR grew 4 percent, beating its pace from last year.
Hotel demand grew 3.1 percent, up from the 2.9 percent rate in the first quarter, while supply growth remained at 2 percent. National occupancy rose by 1.1 percent over the same time last year, part of a movement toward record levels of growth in quarterly occupancy.
Thirty-seven of the 60 markets CBRE tracks had supply gains of more than 2 percent during the quarter, although 19 markets had declines in occupancy, 12 fewer than in the first quarter. Omaha, Nebraska, had the largest demand increase in occupancy at 10.9 percent, while Houston, Texas, still recovering from Hurricane Harvey, grew 7.9 percent.
San Francisco, California’s 10.1 percent increase in ADR gave rise to the largest increase in RevPAR, 10.4 percent. Omaha’s RevPAR also rose 10.1 percent and Houston’s rose 9.2 percent. Of the top-10 markets for RevPAR growth, only Cleveland and Omaha saw increases driven primarily by occupancy. San Francisco produced higher RevPAR with almost no gain in occupancy.