THE SECOND QUARTER 2018 for the U.S. hotel industry was another record breaker, reports STR.
While the data-analysis company compares the 2Q18 business performance of more than 5,200 hotels with the second quarter of 2017, STR also notes the industry in June marked its 100 consecutive month of RevPAR growth. “The U.S. hotel industry is as healthy as it’s ever been,” said Amanda Hite, president and CEO of STR. “Barring unforeseen circumstances, we expect growth to continue.”
Here are the 2Q18 metrics compared with the same time period a year ago:
- Occupancy: Up 1.1 percent to 70.2 percent
- ADR: Up 2.9 percent to $131.02
- RevPAR: +4.0 percent to US$91.94
Demand (room nights sold) grew 3.1 percent year over year, while supply (room nights available) increased 2 percent for the second-consecutive quarter. Overall, each of the key performance metrics were the highest for any second quarter on record, said STR.
“The industry continues to benefit from demand across the travel segments as well as favorable macroeconomic conditions,” said Bobby Bowers, STR’s senior vice president of operations. “The start of summer provided an added demand boost for the major markets,” Bowers said. “That influx of demand lifted hotelier pricing power, as ADR growth was 70 basis points higher in the major markets even with significantly more new rooms available.”
In a year-over-year comparison with June 2017, the industry posted the following:
- Occupancy: Up 1.7 percent to 74.5 percent
- ADR: Up 2.8 percent to $132.66
- RevPAR: Up 4.6 percent to $98.85
“The industry’s 117 million room nights sold were the most we have ever recorded for a June,” said Jan Freitag, STR’s senior vice president of lodging insights. “This drove the strongest year-over-year demand and occupancy increases of 2018. Even this far into the expansion cycle, brands and hoteliers were able to attract 4.2 million more guests than last June. This clearly points at very healthy group, business transient and leisure demand, supported by still undeterred GDP growth and low unemployment numbers.”