STR reports US performance for June 2009

The U.S. hotel industry posted declines in all three key performance measurements during June, according to data from STR.

In year-over-year measurements, the industry’s occupancy fell 9.7 percent to end the month at 61.3 percent. Average daily rate dropped 9.9 percent to finish the month at US$96.77. Revenue per available room for the month decreased 18.6 percent to finish at US$59.34.

Through the first six months of 2009, the industry experienced decreases in all three key metrics in year-over-year comparisons. Occupancy fell 10.9 percent to 54.6 percent, ADR decreased 8.7 percent to US$98.66, and RevPAR fell 18.7 percent to US$53.87.

“While we’re still not seeing any bright light at the end of the tunnel, a few occasional flickers have begun to appear especially as it relates to lodging demand,” said Mark Lomanno, president of STR. “Even though June demand was still down considerably from last year, the level of decline was the best so far in 2009. That trend has continued through the first half of July, and we’re hopeful that it will continue for the remainder of the summer. However, the percentage declines in average daily room rates continue to be at all time lows.”

Highlights from the Top 25 Markets include (in year-over-year comparisons):

• Among the Top 25 Markets, Washington, D.C., was virtually flat in occupancy, decreasing 0.8 percent to 76.6 percent.
• Four markets reported occupancy declines of more than 15 percent: Minneapolis-St. Paul, Minnesota-Wisconsin (-17.1 percent to 61.6 percent); Houston, Texas (-16.3 percent to 55.7 percent); Phoenix, Arizona (-15.7 percent to 45.4 percent); and Detroit, Michigan (-15.2 percent to 55.0 percent).
• New Orleans, Louisiana, was the only market to increase in two of the three key metrics, rising 5.7 percent in ADR to US$116.29 and 1.1 percent in RevPAR to US$70.26.
• New York, New York, reported the largest ADR decrease, falling 30.4 percent to US$199.08, followed by San Francisco/San Mateo, California, which was down 22.3 percent to US$126.87.
• Washington, D.C., was the only market to experience a single-digit RevPAR decrease, which dropped 5.0 percent to US$113.65.
• Six markets experienced RevPAR declines of more than 25 percent: New York (-34.9 percent to US$163.11); San Diego (-31.1 percent to US$84.55); San Francisco/San Mateo (-28.4 percent to US$97.65); Phoenix (-25.8 percent to US$36.60); Chicago, Illinois (-25.7 percent to US$79.30); and Minneapolis-St. Paul (-25.3 percent to US$56.63).

About STR | STR (www.str.com) provides clients-including hotel operators, developers, financiers, analysts and suppliers to the hotel industry-access to hotel research with regular and custom reports covering the United States, Canada, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, global pipelines and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. STR also founded the Hotel Data Conference (www.Hoteldataconference.com).

U.S. performance for June 2009 | STR The U.S. hotel industry posted declines in all three key performance measurements during June, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 9.7 percent to... Adobe PDF Document (Download Acrobat Reader) File Size: 22 Kb - Friday, 24 July 2009