October brought declines in occupancy, RevPAR and ADR for the U.S. hotel industry, according to STR. That follows similar declines in RevPAR and occupancy in September, an indication of the slowdown that led STR to recalculate its forecasts for the year.
Occupancy declined 0.8 percent to 63.9 percent during the month, while ADR was down 0.5 percent to $133.34 and RevPAR decreased 1.3 percent to $92.35. It was the first time RevPAR decreased in consecutive months since December 2009 to January 2010, said Carter Wilson, STR’s senior vice president of consulting and analytics.
“With October’s RevPAR decrease of 1.2 percent, there’s more evidence for a pronounced slowdown on the horizon,” Wilson said. “As noted in our revised forecast, we’re projecting RevPAR increases below 1 percent for 2019 and 2020. The industry has not been below 2.9 percent growth for a year since the recession.”
The decrease in occupancy is mainly because of the Jewish holiday calendar shift from September in 2018, Wilson said.
Among the top 25 markets, Boston reported the steepest decline in RevPAR, down 11.8 percent to 191.12, as a result of the largest drop in occupancy, down 7.1 percent to 83.1 percent.
New Orleans saw the steepest decrease in ADR and the only other double-digit decline in RevPAR, down 5.7 percent to $161.23 and 10.4 percent to $118.65 respectively.
Houston posted the highest increase in occupancy, up 5.3 percent to 68 percent.
Anaheim/Santa Ana, California, registered the largest RevPAR jump, up 6.1 percent to $138.20.
Washington, D.C., reported the highest increase in ADR, up 5.5 percent to $184.27, which resulted in the second-largest RevPAR increase, up 5.2 percent to $142.95.