BUSINESS PERFORMANCE OF U.S. hotels in December was positive across the board, STR reported today.
The month “fell very much in line with the rest of the fourth quarter,” said Jan Freitag, senior vice president of lodging insights at STR.
“Demand and occupancy hit record levels for a December, and room rates grew more than 2 percent for the third consecutive month,” Freitag said.
“Year-over-year supply growth reached 2 percent for the first time since May 2010, but with demand surging past 4 percent, the impact on occupancy levels and pricing power was mitigated.”
In a year-over-year comparison with December 2016, the industry posted the following:
- Occupancy: Up 2.3 percent to an average of 54 percent
- ADR: Up 2.2 percent to $121.86
- RevPAR: Up 4.6 percent to an average of $65.85
Across the industry, RevPAR has increased year over year for 94 consecutive months.
“Once again, total U.S. numbers were boosted by the post-hurricane business that remains in Texas and Florida. That will be the case so long as FEMA is buying rooms in those recovering markets,” Freitag said. Other major markets also outperformed the rest of the country, he said, boosted by New Year’s Eve celebrations, college football bowl games and other large events.
Among the Top 25 Markets, Houston, Texas, reported the largest increase in RevPAR, up 30.9 percent to $60.77, mostly because of the 19.5 percent in occupancy to an average 60.6 percent.
New Orleans, Louisiana, experienced the only other double-digit increase in occupancy – 14.1 percent to 63.6 percent – and the second-highest jump in RevPAR, up 26.1 percent to $90.05.
Miami/Hialeah, Florida, posted the largest lift in ADR – 13.3 percent to $248.47. That led to a double-digit increase in RevPAR, up 22.2 percent to $193.70.
San Diego, California, reported the only double-digit decline in RevPAR, which dropped 11.3 percent to $80.87 as ADR saw the largest decline of 7.7 percent to $126.28.
San Francisco/San Mateo, California, experienced the largest decrease in occupancy, down 5.4 percent to 70.2 percent and the second-largest drop in RevPAR, down 8.1 percent to $127.68.