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STR: U.S. hotel results for week ending 19 January

January 29, 2019 Hotel Trends No Comments Email Email

The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the week of 13-19 January 2019, according to data from STR.

In comparison with the week of 14-20 January 2018, the industry recorded the following:

  • Occupancy: +5.0% to 58.4%
  • Average daily rate (ADR): +3.4% to US$124.32
  • Revenue per available room (RevPAR): +8.5% to US$72.54

STR analysts partially attribute the week’s substantial growth figures to a calendar shift. Growth for Monday of the week was especially pronounced due to comparison with Martin Luther King, Jr. Day last year: 14 January 2019 (standard business day) vs. 15 January 2018 (MLK Day). Significant performance increases were also noticeable on Saturday of the week. That was likely due in part to the Women’s March as well as the long weekend that ended with this year’s MLK Day.

Interestingly, the performance pattern thus far this month is similar to the first three weeks of January 2013—the last time the month began on a Tuesday. During that year, RevPAR was slow for the second week of January prior to strengthening into the week that proceeded MLK Day. The following week then produced more modest growth.

Additional weeks of data will be necessary to analyze any further impact as a result of the government shutdown.

Among the Top 25 Markets, Atlanta, Georgia, registered the largest increase in RevPAR (+39.1% to US$95.62), which was driven by the second-largest jump in occupancy (+16.8% to 74.4%) and the highest rise in ADR (+19.1% to US$128.51).

Washington, D.C.-Maryland-Virginia, experienced the most significant spike in occupancy (+17.8% to 60.2%) and the second-largest jump in RevPAR (+30.7% to US$83.64).

San Francisco/San Mateo, California, ranked second in ADR percentage growth (+14.2% to US$242.12) for the week.

Overall, 19 of the Top 25 Markets reported an increase in RevPAR.

Philadelphia, Pennsylvania-New Jersey, saw the only double-digit decrease in RevPAR (-10.5% to US$67.56), due to the second-steepest decline in occupancy (-6.6% to 57.3%) and the largest drop in ADR (-4.2% to US$US$117.93).

Houston, Texas, experienced the largest decrease in occupancy (-7.1% to 61.6%) and the second-largest drop in RevPAR (-8.7% to US$64.80).

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