The U.S. hotel industry reported positive results in the three key performance metrics for the first quarter of 2015, according to data from STR, Inc.In year-over-year results, occupancy was up 3.1 percent to 61.1 percent; average daily rate rose 4.7 percent to US$117.09; and revenue per available room increased 8.0 percent to US$71.56.
The 61.1-percent occupancy mark is the highest STR has ever recorded for a first quarter, according to Bobby Bowers, STR’s senior VP for operations.
In addition, industry demand increased 4.2 percent during the first quarter, while supply was up 1.0 percent.
“The U.S. hotel industry started the year strong,” Bowers said. “The 8.0-percent increase in RevPAR was the industry’s best first-quarter RevPAR growth rate since 2011. However, that RevPAR growth was still lower than the numbers achieved in the previous three quarters (2014). March trailing 12-month industry occupancy also reached 64.9 percent—that tied a record last achieved in the fall of 1995. We anticipate annualized industry occupancy will reach an all-time high later this year as room demand and revenue growth continues.”
Of the Top 25 Markets, eight reported double-digit RevPAR growth, led by Phoenix, Arizona (+23.0 percent to US$128.61), host city to Super Bowl XLIX on 1 February 2015. Tampa/St. Petersburg, Florida (+15.8 percent to US$103.56) and San Francisco/San Mateo, California (+14.5 percent to US$164.01) followed in RevPAR increases for the first quarter.
Three markets experienced a decrease in RevPAR, with New York, New York (-4.3 percent to US$153.63) reporting the steepest decline. New York City hosted the Super Bowl in February 2014, creating comparisons difficult to match for the first quarter of 2015.
Phoenix also reported the largest ADR increase, up 16.3 percent to US$160.03. San Francisco/San Mateo (+11.7 percent to US$208.26) was the other market to experience a double-digit rise in ADR.
New York (-4.1 percent to US$204.18) and New Orleans, Louisiana (-0.5 percent to US$158.45) were the only markets to report ADR decreases.
Boston, Massachusetts (+6.1 percent to 65.0 percent) posted the largest occupancy increase, while Philadelphia, Pennsylvania-New Jersey (-4.3 percent to 59.5 percent) reported the largest occupancy decrease.