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STR: US Hotel Performance For July 2015

August 24, 2015 Hotel Trends No Comments Print Print Email Email

The U.S. hotel industry reported positive results in the three key performance metrics during July 2015, according to data from STR, Inc.http://www.tourismlegal.com.au/

In year-over-year results, the U.S. hotel industry’s occupancy was up 2.3% to 75.3%; its average daily rate rose 5.9% to US$124.32; and its revenue per available room increased 8.3% to US$93.61.

“The July occupancy of 75.3% was the highest single occupancy of any month ever recorded by STR,” said Jan Freitag, STR’s senior VP for lodging insights. “Hand in hand with this goes the demand of more than 116.8 million roomnights sold, which is 4 million roomnights higher than last July and another all-time record for any month. This translates to a demand increase of 3.5%, which is a continued healthy clip and actually higher than it was in June (+3.2%).”

RevPAR in the U.S. has increased for 65 consecutive months. ADR has risen year-over-year at 5.0% or higher for three straight months and four of the first seven months of 2015.

In July, every Top 25 Market reported year-over-year growth in RevPAR and ADR.

Ten of those markets posted double-digit RevPAR growth, led by Orlando, Florida (+19.4% to US$93.24). Nashville, Tennessee (+17.4% to US$102.16), and Atlanta, Georgia (+15.1% to US$82.72), were the other two markets to post RevPAR increases of more than 15.0%.

Philadelphia, Pennsylvania-New Jersey, recorded the lowest year-over-year increase in RevPAR, up 0.5% to US$90.03.

Eight markets reported double-digit ADR increases for the month, led by Los Angeles/Long Beach, California (+12.6% to US$173.87). Boston, Massachusetts, followed with an 11.7% increase to US$200.00.

Philadelphia reported the lowest increase in ADR, up 0.3% to US$121.60.

All but five of the Top 25 Markets experienced an increase in occupancy. Orlando saw the largest rise in occupancy, up 8.4% to 84.0%. Houston, Texas, saw the largest occupancy decline, down 3.9% to 70.3%.

“The Top 25 Markets were basically full in July—occupancy was 80.6%,” Freitag said.

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