A SLIGHT SHIFT in the calendar put July’s U.S. hotel performance over the top in a year over year comparison, according to STR. However, overall growth continued to slow as supply increases mitigated a rise in demand.
Occupancy rose 0.4 percent to 73.8 percent during the month while ADR went up 0.7 percent to $135.04. RevPAR rose 1.1 percent to $99.62, according to STR.
“This was the first month in history with absolute RevPAR basically at $100,” said Jan Freitag, STR’s senior vice president of lodging insights. “Opposite of June, when an extra Sunday on the calendar pushed year-over-year comparisons into negative territory, July percentage changes were lifted by a fifth Wednesday during the month.”
Those calendar differences do little to change the overall story, Freitag said.
“The industry set another monthly demand record, but a steady stream of new supply muted occupancy growth and influenced already weak pricing confidence,” he said. “ADR growth, which continues below the rate of inflation, has reached 1 percent or higher just twice this year. Our revised forecast released last week projects further slowing in performance through 2020.”
July was the 113th month of the current expansion cycle, a record, and RevPAR increased over the previous year in 111 of those months. The exceptions were September 2018, which saw a 0.3 percent RevPAR drop, and June, during which it sank 0.4 percent. Previously the longest growth cycle in U.S. history happened between December 1991 and March 2001, during which only in August 1998 did RevPAR sink (by 0.4 percent.
Among the top 25 markets, Denver saw an 8.1 percent rise in RevPAR to $135.04, the largest increase of the month. The Mile High City also saw the largest rise in ADR, up 4.4 percent to $152.74.Houston had the highest rise in occupancy, up 4.9 percent to 64.9 percent.
San Francisco/San Mateo, California, registered the only double-digit decrease in RevPAR, dropping 13.7 percent to $194.90 following the steepest decline in ADR, down 9.7 percent to $231.34.
Tropical Storm Barry brought New Orleans the only double-digit drop in occupancy, down 12 percent to 60.3 percent, and the second-largest decline in RevPAR, dropping 9.9 percent to $84.21.