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STR: US hotel results for week ending 5 October

October 12, 2013 Statistics & Trends No Comments Email Email

The U.S. hotel industry posted slight increases in two key performance measurements during the week of 29 September to 5 October, according to data from STR.

In year-over-year measurements, the industry’s occupancy declined 1.2 percent to 64.7 percent. Average daily rate edged up 1.4 percent to finish the week at US$111.67. Revenue per available room for the week increased 0.1 percent to finish at US$72.29.

The relatively flat performances across the board can be attributed to the partial shutdown of the U.S. government on 1 October, said Brad Garner, senior VP for STR. Declines and increases in markets typically associated with group business were the result of large groups moving their meetings from one city in 2012 to another city in 2013.

Washington D.C. and Norfolk-Virginia Beach, Virginia, were among the markets most affected during the week. Garner said each market experienced a progressive decline in occupancy during the week. Washington ended the week with a 12.1 percent decline in occupancy, a flat ADR and a 12.1-percent drop in RevPAR. The Norfolk-Virginia Beach market finished the week with a 9.9-percent fall in occupancy, a 2.4-percent decrease in ADR and a 12.1-percent decline in RevPAR.

“Several variables factor into the performance for the week, and overall there were challenges for a number of markets,” Garner said. “Long-term effects of the shutdown remain to be seen, but in the early going it clearly had an impact on the overall hotel industry.”

Other markets with notable performance metric decreases include: New Orleans, Louisiana (-9.4 percent occupancy); Detroit, Michigan (-7.1 percent occupancy); San Francisco, California (-13.0 percent ADR and -13.3 percent RevPAR); Denver, Colorado (-8.0 percent ADR); and Chicago, Illinois (-10.0 percent RevPAR).

Garner said an analysis of the performances in several national park areas indicated a general slowdown during the week as occupancies fell in Gatlinburg/Great Smokey Mountain National Park, Tennessee  (-11.8 percent), the Grand Canyon area (-11.4 percent) and Bozeman/Yellowstone National Park, Montana (-7.9 percent).

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