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STR: US hotel performance for June 2016

July 23, 2016 Hotel Trends No Comments Print Print Email Email

The U.S. hotel industry reported positive results in the three key performance metrics during June 2016, according to data from STR.http://www.deevanahotels.com/

Compared with June 2015, the U.S. hotel industry’s occupancy was nearly flat (+0.3% to 73.1%). Average daily rate for the month was up 3.5% to US$126.14. Revenue per available room grew 3.8% to US$92.17.

“June RevPAR growth was the second highest monthly increase this year, and that is obviously a positive indicator for the rest of the summer,” said Joseph Rael, STR’s director of financial performance. “June also helped round out the second quarter, which produced improved results from a soft first quarter.”

Also during June, year-to-date demand growth (+1.6%) moved ahead of supply (+1.5%).

“It appears that slowing demand growth may be the larger issue than supply growth this year,” Rael said. “Demand growth was up 3.0% during this same time last year, and while supply is certainly up, demand growth has slowed considerably.”

Two Top 25 Markets recorded a double-digit increase in RevPAR for the month: Nashville, Tennessee (+11.3% to US$122.24), and San Francisco/San Mateo, California (+10.6% to US$227.60).

“San Francisco’s occupancy topped 90%, but RevPAR growth was driven by a 9.8% rise in ADR,” said Alison Hoyt, STR’s director of consulting & analytics. “RevPAR growth in Nashville, on the other hand, was more evenly split between occupancy and rate growth, with demand (+5.8%) trending well above the national average.”

Houston, Texas, saw the steepest decline in RevPAR, down 9.5% to US$67.70.

Denver, Colorado, posted the largest rise in ADR, up 9.9% to US$141.33.

Philadelphia, Pennsylvania-New Jersey, reported the largest drop in ADR, down 3.1% to US$138.27.

Phoenix, Arizona, experienced the largest increase in occupancy, up 7.5% to 62.2%.

Houston reported the largest occupancy decrease, down 7.7% to 65.6%.

Absolute occupancy in San Francisco/San Mateo (90.9%) was the highest of any of the Top 25 Markets in June.

New York, New York, posted the highest absolute values for ADR (US$273.44) and RevPAR (US$245.11) for the month.

“Overall, the Top 25 Markets (RevPAR +2.6%) underperformed all other markets (RevPAR +4.5%) in June, mainly due to a 0.5% occupancy decrease in the Top 25,” Hoyt said.

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