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STR: U.S. hotel performance for July 2019

August 23, 2019 Hotel Trends No Comments Email Email

The U.S. hotel industry reported positive results in the three key performance metrics during July 2019, according to data from STR.

In a year-over-year comparison with July 2018, the industry posted the following:

  • Occupancy: +0.4% to 73.8%
  • Average daily rate (ADR): +0.7% to US$135.04
  • Revenue per available room (RevPAR): +1.1% to US$99.62

“This was the first month in history with absolute RevPAR basically at $100,” said Jan Freitag, STR’s senior VP of lodging insights. “Opposite of June, when an extra Sunday on the calendar pushed year-over-year comparisons into negative territory, July percentage changes were lifted by a fifth Wednesday during the month.

“With those calendar shifts aside, however, the story is pretty much the same. The industry set another monthly demand record, but a steady stream of new supply muted occupancy growth and influenced already weak pricing confidence. ADR growth, which continues below the rate of inflation, has reached 1% or higher just twice this year. Our revised forecast released last week projects further slowing in performance through 2020.”

The industry’s current expansion cycle has reached a record 113 months (March 2010-present) with year-over-year RevPAR increases in 111. The only decreases during this run came in September 2018 (-0.3%) and June 2019 (-0.4%). The previous long growth cycle in U.S. history lasted 112 months (December 1991-March 2001) with one decrease (-0.4%) in August 1998. That 112-month stretch was followed by 17 months of year-over-year RevPAR decreases.

Cycle Overall Months Months with increases
March 2010-present 113 111
December 1991-March 2001 112 111

Among the Top 25 Markets, Denver, Colorado, registered the largest July jump in RevPAR (+8.1% to US$135.04), thanks in part to the largest lift in ADR (+4.4% to US$152.74).

Houston, Texas, experienced the highest rise in occupancy (+4.9% to 64.9%).

Nashville, Tennessee, saw the second-largest increases in each of the three key performance metrics: occupancy (+4.6% to 77.1%), ADR (+3.3% to US$141.90) and RevPAR (+8.0% to US$109.44).

San Francisco/San Mateo, California, registered the only double-digit decrease in RevPAR (-13.7% to US$194.90), which was primarily the result of the steepest decline in ADR (-9.7% to US$231.34).

Negatively affected by Tropical Storm Barry, New Orleans, Louisiana, experienced the only double-digit drop in occupancy (-12.0% to 60.3%) and the second-largest decline in RevPAR (-9.9% to US$84.21).

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