Published on : Saturday, April 26, 2014
The U.S. hotel industry reported increases in all three key performance metrics for the first quarter 2014 in year-over-year measurements, according to data from STR.
The industry’s occupancy increased 2.9 percent to 59.2 percent; average daily rate rose 3.8 percent to US$112.45; and revenue per available room was up 6.8 percent to US$66.59.
“First quarter performance was solid, with RevPAR driven primarily by ADR, and helped by a favorable Easter comp (Easter fell in March 2013),” said Bobby Bowers, senior VP of operations at STR. “However, February’s RevPAR growth of 7.4 percent was the quarter’s best. First quarter occupancy of 59.2 percent was the highest first quarter occupancy the industry has experienced since 2007. Room supply also ticked up to 0.9 percent in the quarter, and we expect this gradual upward supply movement to continue in 2014.”
Among the Top 25 Markets, Denver, Colorado, reported the largest occupancy increase, rising 12.4 percent to 68.8 percent. New York, New York (-3.3 percent to 75.6 percent) and Miami/Hialeah, Florida (-1.6 percent to 84.6 percent) posted the largest occupancy decreases.
San Francisco/San Mateo, California, rose 12.3 percent in ADR to US$186.47, achieving the largest increase in that metric. Nashville, Tennessee, followed with an 11.9-percent increase to US$110.71.
Three markets experienced RevPAR increases of more than 15 percent: Denver (+21.8 percent to US$71.28); Nashville (+19.0 percent to US$74.04); and San Francisco/San Mateo (+17.7 percent to US$143.52).
Washington, D.C., reported the largest decrease in both ADR (-3.9 percent to US$142.37) and RevPAR (-4.5 percent to US$84.82).
Tags: Hotel industry report, Hotel News, Q1 2014 results, STR, us hotel news'