Industry room supply increased 1.8 percent in the quarter, down significantly from the 2.8 supply growth of first quarter 2001. Industry demand (roomnights sold) fell 4 percent compared to demand growth of 2.3 percent in the first quarter 2001.
In the month of March 2002, occupancy declined 5.6 percent to 60.9 percent while room rate slipped 4.9 percent to $85.48. March REVPAR decreased 10.3 percent to $52.03. March 2002 operating performance was negatively impacted by the timing of the Easter holiday period.
"The U.S. lodging industry endured a challenging operating environment in the first quarter", said Mark Lomanno, President of Smith Travel Research. "Assuming continued improvement in the U.S. economy and no terrorist attacks on the U.S. mainland, we believe the stage is set for improved industry performance for the balance of 2002 and into 2003", Lomanno added.
Smith Travel Research --- the leader in lodging industry tracking and analysis --- provides regular industry reporting to all major North American chains. The company also provides daily performance reporting through its daySTAR program.
