Published on : Saturday, December 21, 2013
Overall, the occupancy of the U.S. hotel industry rose slightly, up 2.1 percent to 57.4 percent. Its average daily rate was up 2.6 percent to US$107.50, and revenue per available room increased 4.7 percent to US$61.74.
“Plenty of calendar issues resulted in sluggish results. Hanukkah fell in November whereas it was in December last year, shifting some group business. Thanksgiving shifted by a week, which probably had no meaningful impact. We traded one Thursday for a Saturday this year, which should have had positive demand impact, if not revenue,” said Jan Freitag, senior VP at STR.
Transient (+3.5 percent) and group (+2.5 percent) ADR growth was anemic, and group occupancy only grew 0.6 percent, Freitag said.
Among the Top 25 Markets, Denver, Colorado, experienced the largest occupancy increase for the month, rising 13.0 percent to 63.4 percent. Two markets followed: Nashville, Tennessee (+11.3 percent to 65.5 percent), and Tampa-St Petersburg, Florida (+9.1 percent to 59.9 percent). Philadelphia, Pennsylvania-New Jersey, saw the largest occupancy decrease, falling 12.9 percent to 63.3 percent.
Four markets achieved double-digit ADR increases: San Francisco/San Mateo, California (+20.3 percent to US$194.23); New Orleans, Louisiana (+20.2 percent to US$155.70); Nashville (+11.3 percent to US$106.77); and Dallas, Texas (+11.3 percent to US$93.11). Chicago, Illinois, reported the largest ADR decline, with a 6.4-percent drop to US$127.69.
San Francisco/San Mateo ended the month with the largest RevPAR increase, rising 28.3 percent to US$153.80. New Orleans followed with a 26.1-percent increase to US$106.44. Philadelphia reported the largest RevPAR decrease, dropping 9.9 percent to US$77.19, followed by New York, New York (-8.5 percent to US$229.02).
Tags: Hotel News