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STR: US hotel performance for June 2017

July 21, 2017 Hotel Trends No Comments Email Email

The U.S. hotel industry reported positive results in the three key performance metrics during June 2017, according to data from STR.

In a year-over-year comparison with June 2016, the industry reported the following:
Occupancy: +0.7% to 73.4%
Average daily rate (ADR): +2.1% to US$129.12
Revenue per available room (RevPAR): +2.8% to US$94.73
“The industry sold more roomnights than any other June on record and achieved a record occupancy level for the month,” said Jan Freitag, STR’s senior VP for lodging insights.

“Once again we were a bit surprised by the strength in room demand. Transient occupancy (bookings of less than 10 rooms) increased 1.4%, while Group occupancy (bookings of 10 or more rooms) was actually down 2.1%. So the current demand environment is driven by individual travelers, be they domestic or foreign summer travelers. As long as unemployment numbers remain low, and modest but healthy economic growth remains the norm, the hotel industry will continue to benefit.”

RevPAR has now grown year over year for 88 consecutive months in the U.S.

Two Top 25 Markets posted double-digit growth in RevPAR for the month: Orlando, Florida (+11.5% to US$91.39), and Norfolk/Virginia Beach, Virginia (+10.7% to US$92.67).

Seattle, Washington, posted the largest growth in ADR (+7.8% to US$192.22).

Norfolk/Virginia Beach reported the largest increase in occupancy (+6.9% to 77.1%).

San Francisco/San Mateo, California, experienced the largest RevPAR decrease (-12.6% to US$197.97), due primarily to the steepest decline in ADR (-9.6% to US$225.58).

Houston, Texas, reported the largest drop in occupancy (-6.2% to 61.4%) and the only other double-digit decrease in RevPAR (-10.8% to US$60.22).

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