US Hotel Industry Performing Well

The latest news on the US hotel industry indicates that it too is rejoicing in the general recovery of the US economy and, more recently the property market as a whole...

The latest news on the US hotel industry indicates that it too is rejoicing in the general recovery of the US economy and, more recently the property market as a whole.

According to the latest weekly report from STR Global, positive results were recorded in the three key performance metrics during the week of 2-8 December 2012.

Occupancy increased by 3.6% compared to last year, to an average of 55.3%. Average Daily Rate (ADR) increased by 5.4% year on year to $107.64 and Revenue Per Available Room (RevPAR) increased by 9.2% compared to last year to average $59.57.

The top-performing markets make for some interesting reading. According to the data Atlanta Georgia saw the biggest jump in occupancy, which increased by 15.3% to 60.4% on average. Apart from that 3 other markets also saw double-digit growth in occupancy: Miami-Hialeah, Florida (+14.5 percent to 86.6 percent); Seattle, Washington (+12.3 percent to 67.6 percent); and Orlando, Florida (+10.0 percent to 63.3 percent).

The largest decreases in occupancy were recorded in San Diego, California (-7.6 percent to 59.6 percent), and Phoenix, Arizona (-5.1 percent to 55.0 percent).

Miami-Hialeah was also a top market in terms of ADR, with the largest increase of 44.0 percent during the period to US$211.34.  As was Atlanta, with the second biggest ADR increase of 24.1% to US$102.52. Both also saw the biggest growth in RevPAR as well, Miami-Hialeah took first with a growth of 64.9 percent to US$183.07, and Atlanta second with a growth of 43.0 percent to US$61.88. Atlanta was helped by its hosting the American Society of Haematology annual meeting 8-11 December, while  Miami-Hialeah played host to the Art Basel art festival 6-9 December.

San Diego posted the only double-digit ADR decrease, dropping 14.0 percent to US$115.67, while
two markets experienced double-digit RevPAR decreases: San Diego again with a contraction of 20.5 percent to US$68.93, and New Orleans, Louisiana -10.9 percent to US$83.68.

- Friday 21 December 2012

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