Skip to content

Search

Latest Stories

STR: 2019 was record setting for hospitality

At the same time, the year saw the slowest growth since the recession

IT WAS ANOTHER record setting year for the U.S. hospitality industry in 2019, according to STR. However, it was also the slowest growth for RevPAR the industry has seen since the recession.

Compared to 2018, occupancy growth remained flat at 66.1 percent while ADR rose 1 percent to $131.21 and RevPAR went up 0.9 percent to $86.76. Absolute ADR and RevPAR for the year were the highest STR has bookmarked while the addition of more than 1.9 billion room nights available and roughly 1.3 billion room nights sold means both supply and demand rose 2 percent.


“The industry turned in another record year in terms of rooms available, rooms sold and rooms revenue,” said Amanda Hite, STR’s president. “As was documented throughout 2019, however, RevPAR growth came in lower than any year since the recession and well below the long-term historical average of 3.2 percent. With supply and demand growing in equilibrium, ADR is the sole driver of RevPAR gains. Unfortunately, with ADR rising below the rate of inflation, revenue growth is not keeping up with rising costs, such as increases in wages. That is a concern for owners and operators alike.”

Hite said STR is not forecasting a significant change in fundamentals for the near future.

“Supply growth has remained manageable at the national level, but there is an uneven amount of new inventory in the limited-service sectors as well as certain major markets,” she said. “That is where we will see the greatest challenges as the industry embarks on another year of low performance growth levels.”

Phoenix, experienced the highest rise in occupancy, up 1.6 percent to 70.7 percent, and RevPAR, rising 4.5 percent to $94.23. Super Bowl LIII host Atlanta reported the year’s largest lift in ADR, a rise of 4.2 percent to $114.54.

Denver and Tampa/St. Petersburg, Florida, tied the record for the second-highest increase in occupancy with a rise of 1.3 percent to 73.9 percent and an increase of 1.3 percent to 72.3 percent respectively. Denver also registered the second-largest spike in RevPAR, going up 4.3 percent to $100.27.

Seattle saw the steepest decline in RevPAR, dropping 4 percent to $118.86 after supply growth in the city slipped to 5.9 percent. Houston posted the largest drop in ADR, losing 3.2 percent to $101.89.

In the fourth quarter of 2019, U.S. hotel occupancy fell 0.1 percent to 61.8 percent, ADR was up 0.7 percent to $128.94 and RevPAR increased 0.7 percent to $79.69. That quarter was capped in December by a 0.6 percent increase in occupancy to 54.4 percent, while ADR and RevPAR rose 2 percent to $126.84 and 2.6 percent to $69 respectively that month.

More for you

U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less
U.S. travelers using mobile devices to book independent boutique hotel stays with personalized offers and smart tech in 2025

Study: Personalization boosts independent hotel bookings

Summary:

  • Around 95 percent of U.S. travelers are more likely to book independent hotels with personalized offers, according to TakeUp.
  • 59 percent plan more travel in 2025, with 78 percent favoring weekend getaways and 65 percent domestic trips.
  • Top booking deterrents are few reviews at 39 percent, unclear cleanliness or quality at 38 percent and inflexible cancellations at 29 percent.

PERSONALIZED OFFERS BASED on interests would make 95 percent of U.S. travelers more likely to book at an independent hotel, according to TakeUp, a revenue management platform for independent hotels. About 85 percent are open to technologies such as smart check-in, recommendations and AI-based pricing.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
AI threats in hospitality

Study: Cyberattacks on hotels to surge

Summary:

  • Around 66 percent of hotel IT and security executives expect more cyberattacks this summer, and 50 percent anticipate greater severity, according to VikingCloud.
  • Guest-facing systems most at risk include POS and payment technology at 72 percent, guest WiFi at 56 percent and front desk systems at 34 percent.
  • About 48 percent of executives lack confidence in their staff’s ability to detect and respond to AI-driven attacks and deepfakes.

APPROXIMATELY 66 PERCENT of hotel IT and security executives expect an increase in cyberattack frequency and 50 percent anticipate greater severity during the summer travel season, according to cybersecurity firm VikingCloud. In summer 2024, 82 percent of North American hotels experienced a cyberattack and 58 percent were targeted five or more times.

Keep ReadingShow less