THE U.S. HOTEL industry kept up its growth in November, but with marked signs of slowing, according to STR. Forecasts are for occupancy to lag despite rising demand.
Occupancy rose 0.4 percent over last November to 61.7 percent while ADR rose 1.2 percent to $124.22. RevPAR increased 1.6 percent to $76.69.
“The industry established another monthly demand record (97 million room nights sold), but the ADR growth figure was the lowest we have seen since September 2017,” said Jan Freitag, STR’s senior vice president of lodging insights. “Even though demand continued to rise, overall occupancy performance was mixed at best.”
Frietag said nineteen of the top 25 markets had reported occupancy declines in group travel and upper upscale, upscale and upper midscale class hotels reported lower occupancy than a year ago.
“The industry now enters a four-month period of expected sub-62 percent occupancy, and that will continue to put pressure on price increases,” he said. “Industrywide performance is still mostly healthy, and it will remain that way, but that lack of pricing confidence is expected to continue to produce uninspiring RevPAR growth rates.”
Boston, Massachusetts, saw the largest increases in occupancy (up 8.8 percent to 77.5 percent), ADR (up 6.7 percent to $197.26) and RevPAR (up 16.1 percent to $152.95). Houston, Texas, had the only double-digit declines in occupancy (down 19.2 percent to 59.1 percent) and RevPAR (down 25 percent to $60.60) and ADR (down 7.2 percent to $102.51), due mostly to the unusually high demand period the city saw last year as a result of Hurricane Harvey. The unusually high performance levels after last year’s hurricanes led to sudden “dips” in performance in RevPAR performance in September, STR reported previously.