STR: Upper-tier increase slow in weekly results- week ending 08-21-10

August 26 2010 | Latest News

By Rachael Spann Urie

HENDERSONVILLE, Tennessee—The luxury segment and the upper-upscale segment reported the smallest occupancy increases among the chain-scale segments during the week ending 21 August 2010, according to data from STR.

The upper-upscale segment rose 5.2% in occupancy to 71.2%, and the luxury segment rose 3.3% to 67.4%.

Overall, the industry’s occupancy increased 8.2% to 65.3%, average daily rate rose 1.5% to US$97.32, and revenue per available room increased 9.8% to US$63.59.

Among the chain-scale segments, the economy segment reported the largest occupancy increase, rising 10.2% to 59.2%, followed by the midscale-without-food-and-beverage segment (+8.7% to 66.0%) and the independent segment (+8.6% to 65.3%).

The luxury segment posted the largest ADR increase, up 6.3% to US$227.23. The economy segment reported the only ADR decrease, falling 1.1% to US$53.79.

Two segments experienced double-digit RevPAR increases: the independent segment (+10.6% to US$63.09) and the midscale-without-food-and-beverage segment (+10.0% to US$58.31).

Among the top 25 markets Phoenix, Arizona, experienced the largest decrease in all three key performance metrics. The market’s occupancy fell 5.3% to 43.5%, ADR dropped 6.3% to US$70.55, and RevPAR plummeted 11.2% to US$30.72.

Detroit, Michigan, achieved the largest occupancy increase, rising 23.9% to 67.3%, followed by New Orleans, Louisiana (+22.3% to 52.9%), and St. Louis, Missouri-Illinois (+15.4% to 65.5%).

Two markets reported double-digit ADR increases: New York, New York (+13.1% to US$206.73), and San Francisco/San Mateo, California (+10.4% to US$135.02).

New Orleans led the RevPAR increases for the week, rising 27.0% to US$45.76.