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.