OCCUPANCY WAS FLAT at 71.4 percent for U.S. hotels in August, but the month still held some positive movement, according to STR. ADR increased 0.9 percent year over year to $132.47, while RevPAR went up 0.9 percent to $94.55.
“As supply and demand growth are basically in equilibrium, all RevPAR growth stems from ADR, and that growth rate has been lackluster,” said Jan Freitag, STR’s senior vice president of lodging insights. “Over the first eight months of the year, ADR growth has been below or just at the level of inflation, which creates quite a bit of pressure on profit margins. This is a trend we’ve seen across chain scales and classes, and we do not expect the fundamentals to change much moving forward.”
August was 114th month of the current expansion cycle with year-over-year RevPAR increases in 112 of those months. The exceptions were September 2018, which saw a 0.3 percent RevPAR drop, and June, during which it declined 0.4 percent. Previously the longest growth cycle in the U.S. history happened between December 1991 and March 2001, during which only in August 1998 did RevPAR go down by 0.4 percent.
Among the top 25 markets, Phoenix, Arizona, reported the only double-digit increase in RevPAR, up 11.2 percent to $56.45. This was due to an increase in occupancy, up 6.3 percent to 63.4 percent, and ADR, up 4.6 percent to 89.05.
Oahu Island, Hawaii experienced the second-largest increases in occupancy and RevPAR, up 5 percent to 88.8 percent and up 6.5 percent to $226.73 respectively.
Orlando, Florida registered the largest decrease in occupancy, down 3.1 to 68.9 percent.
Seattle, Washington saw the steepest declines in ADR, down 6.5 percent to $188.56, and RevPAR, down 9.3 percent to 159.71.
Occupancy fell 1.1 percent to 61 percent during the week of Sept. 1 to 7, STR announced previously.