The U.S. hotel industry reported positive results in the three key performance metrics during March 2015, according to data from STR, Inc.In year-over-year results, the U.S. hotel industry’s occupancy was up 2.3 percent to 66.8 percent; its average daily rate rose 4.9 percent to US$120.38; and its revenue per available room increased 7.3 percent to US$80.44.
“The first quarter of 2015 finally brought what was expected for a while now—the 12-month moving average for occupancy reached the all-time record of 64.9 percent, matching the fall of1995,” said Jan Freitag, STR’s senior VP of strategic development. “This means that all of the key performance indicators (rooms available, rooms sold, revenue, ADR, occupancy and RevPAR) are now at all-time highs. Obviously the dollar amounts are not inflation adjusted, but the industry is firing on all cylinders, and I would expect more record-breaking demand and revenue numbers for the foreseeable future.”
According to Freitag, the 66.8-percent occupancy rate is the highest STR has ever recorded for March. The industry also set a record with more than 100 million rooms sold, and RevPAR increased in the U.S. for the 61st consecutive month.
Of the Top 25 Markets, 11 reported double-digit RevPAR growth, led by Boston, Massachusetts (+20.3 percent to US$127.48) and San Francisco/San Mateo, California (+18.3 percent to US$175.63).
New Orleans, Louisiana (-6.6 percent to US$130.17) and Denver, Colorado (-0.1 percent to US$82.29) reported the only RevPAR decreases for the month.
Five of the Top 25 Markets experienced a double-digit ADR increase, led by San Francisco/San Mateo (+13.4 percent to US$210.40).
New Orleans reported the largest ADR decrease during the month (-5.2 percent to US$159.90).
Boston (+9.1 percent to 75.2 percent) posted the largest occupancy increase, while Denver (-4.2 percent to 72.4 percent) reported the largest occupancy decrease.