24 May 2010
The U.S. hotel industry posted mixed results in the three key performance measurements during April 2010, according to data from STR.
In year-over-year measurements, the industry’s occupancy was up 4.7 percent to 58.4 percent. Average daily rate dropped 1.2 percent to finish the month at US$97.72. Revenue per available room for the month increased 3.5 percent to finish at US$57.06.
“The hotel industry’s collective performance in April displayed a continued march back to prosperity,” said Mark Lomanno, president of STR. “The demand for hotel rooms accelerated again, resulting in rapidly improving occupancies. However, room rates to date have yet to show any positive movement, resulting in RevPAR growth all coming from occupancy gains. We are looking for this to change in the coming months.”
Among the Top 25 Markets, New Orleans, Louisiana, experienced the largest occupancy increase, rising 16.1 percent to 71.6 percent, followed by Boston, Massachusetts (+15.9 percent to 71.2 percent), and Chicago, Illinois (+11.9 percent to 61.2 percent). Two markets reported occupancy decreases: Norfolk-Virginia Beach, Virginia (-7.1 percent to 53.2 percent), and Houston, Texas (-4.2 percent to 55.7 percent). New York, New York, ended the month with the highest occupancy, 83.9 percent.
New York posted the largest ADR increase, rising 6.6 percent to US$216.95, followed by New Orleans with a 6.0-percent increase to US$130.25. Detroit, Michigan, experienced the only double-digit ADR decrease, falling 15.0 percent to US$76.50.
Three markets reported RevPAR increases of more than 10 percent: New Orleans (+23.1 percent to US$93.26); Boston, Massachusetts (+21.3 percent to US$104.36); and New York (+12.4 percent to US$181.95). Houston posted the largest RevPAR decrease, falling 9.8 percent to US$49.87, followed by Norfolk-Virginia Beach (-9.4 percent to US$40.86) and Detroit (-7.6 percent to US$40.65).