Compared with Q2 2015, the U.S. hotel industry’s occupancy was almost flat (+0.6% to 69.4%). Average daily rate was up 2.9% to US$124.47. Revenue per available room increased 3.5% to US$86.33.
Also during the second quarter, industry demand (+2.1%) outpaced supply (+1.5%).
“Demand and occupancy were the highest STR has ever recorded for a second quarter,” said Bobby Bowers, STR’s senior VP for operations. “At the same time, hoteliers did not appear to take advantage of that pricing power as the 2.9% increase in ADR was the lowest of any quarter since the fourth quarter of 2010. As a result, the 3.5% lift in RevPAR was the lowest for a second quarter since 2009.”
Three Top 25 Markets experienced a double-digit lift in RevPAR for the quarter: Dallas, Texas (+12.1% to US$80.64); Los Angeles/Long Beach, California (+11.1% to US$140.60); and Nashville, Tennessee (+10.6% to US$115.28).
Los Angeles/Long Beach posted the largest rise in ADR, up 9.4% to US$171.05.
Phoenix, Arizona (+5.9% to 67.6%), saw the largest increase in occupancy, followed by Dallas (+5.7% to 76.9%).
Houston, Texas, experienced the steepest declines in occupancy (-6.9% to 66.2%) and RevPAR (-8.0% to US$73.29).
New York, New York, reported the largest drop in ADR, down 3.1% to US$268.39.
“Despite the decrease, New York’s absolute value for ADR was the highest of any of the Top 25 Markets,” Bowers said. “The same was true for occupancy (88.2%) in the market.”