YES, REVPAR FOR U.S. hotels grew 1.7 percent in 2018’s third quarter over the previous year, according to STR. Nevertheless, hotels’ performance was dampened by the first decline in RevPAR seen in 102 months, which came in September.
Occupancy also declined in the third quarter, down 0.4 per percent to 71 percent, while ADR rose 2.1 percent to $131.86. Demand grew 1.6 percent and supply increased 2 percent for the third-consecutive quarter, according to the STR.
Part of the issue was that this September’s demand performance was put up against the record demand seen during that month last year following Hurricanes Irma and Harvey, said STR Senior Vice President of Operations Bobby Bowers. The point remains that September’s decline slowed growth for the entire quarter.
“Actually, that 1.7 percent rise in RevPAR was the lowest for a third quarter since the current growth cycle started in 2010,” Bowers said. “Regardless, growth is growth, and overall industry performance remains in good shape with our forecast calling for growth through at least 2019.”
With a rise of 4.8 percent to 61.1 percent, Phoenix, Arizona, saw the largest increase in occupancy, along with the highest rise in RevPAR, which rose 9.3 percent to $57.55. San Francisco/San Mateo, California, had the highest lift in ADR, up 8.3 percent to $257.03. In absolute values, New York, New York, ranked first in occupancy (89.8 percent), ADR ($261.92) and RevPAR ($235.21).
Houston, Texas, where Hurricane Harvey struck last year, saw some of the worst declines across the board, with occupancy dropping 11.2 percent to 59.8 percent, ADR declining 2.1 percent to $100.30 and RevPAR dipping 13.1 percent to $59.94. Only the Washington, D.C. /Maryland-Virginia areas saw a decrease in ADR, going down 0.8 percent to $142.80.