Posted on: April 24 2012 | Posted in: Latest NewsDouble digit increases in ADR...
April 24, 2012
HENDERSONVILLE, Tennesseeâ€”The U.S. hotel industry reported increases in all three key performance metrics for first-quarter 2012 in year-over-year measurements, according to data from STR.
The industry’s occupancy increased 3.8 percent to 56.8 percent, average daily rate rose 4.0 percent to US$103.54, and revenue per available room was up 7.9 percent to US$58.78.
“The industry’s positive momentum continued in the first quarter against difficult year-over-year comparisons,” said Bobby Bowers, senior VP of operations at STR. “First-quarter demand slowed somewhat versus the same period last year but remained surprisingly robust. RevPAR moved up nearly 8 percent, fueled by solid ADR growth and positive occupancy movement. April’s performance will likely be somewhat weaker. However, we expect ADR growth to continue at, or near, its current pace with some deceleration in occupancy growth for the balance of 2012.”
Among the Top 25 Markets, Nashville, Tennessee, rose 12.9 percent in occupancy to 61.6 percent, reporting the largest increase in that metric. Houston, Texas, followed with a 10.3-percent increase to 66.7 percent. Phoenix, Arizona, posted the only occupancy decrease, falling 1.2 percent in occupancy to 71.7 percent.
Three markets experienced double-digit ADR increases: New Orleans, Louisiana (+13.0 percent to US$146.64); San Francisco/San Mateo, California (+11.7 percent to US$160.15); and Oahu Island, Hawaii (+10.1 percent to US$176.15). Dallas, Texas, reported the largest ADR decrease, falling 5.0 percent to US$88.92, followed by Washington, D.C., with a 2.0-percent decrease to US$142.91.
Nashville achieved the largest RevPAR increase, up 17.6 percent to US$57.56, followed by New Orleans (+16.6 percent to US$101.87), and Oahu Island (+15.9 percent to US$151.97). Dallas (-3.9 percent to US$52.93) and Washington, D.C. (-1.5 percent to US$85.10) ended the quarter with the only RevPAR decreases.