STR reports three key measurements drop during the week ending 25 October 2008
ADR is beginning to shows signs of softness, as each day during the week of 19-25 October saw a decline in ADR from the same period a year ago: Sunday -0.1 percent; Monday -0.4 percent; Tuesday -0.6 percent; Wednesday -0.7 percent; Thursday -0.8 percent; Friday -0.8 percent; and Saturday -0.8 percent.
“ADR growth was negative each day last week, which is an area of concern because this slide has been a trend in week-to-week activity,” said Brad Garner, vice president of operations/client services for STR. “In each of the last three weeks industry wide ADR growth has steadily declined from the 3.0-percent rate of increase that took place in late September.
“The industry at large has done an excellent job of maintaining and leveraging rate, and while not waving the white flag, it certainly remains to be seen how much rate leverage can continue for the balance of the year and beyond,” Garner said.
Saturday, 25 October was the highest occupancy day of the week at 68.1 percent, while the upper-upscale segment had the best week of the chain-scale segments with a 75.4-percent occupancy rate.
Houston, Texas, was the bright spot among Top 25 markets as it posted across-the-board gains. Hotels in the Houston area remain full in the aftermath of Hurricane Ike, which made landfall in Texas on 12 September 2008. In year-over-year results, Houston hotels last week recorded a 19.2-percent increase in occupancy, a 10.0-percent rise in ADR and a 31.2-percent jump in RevPAR. New Orleans, Louisiana (+0.3 percent) was the only other Top 25 market with occupancy rate growth. San Diego, California, (+9.2 percent) led the 10 other cities besides Houston that experienced ADR growth. Two Top 25 markets other than Houston had increases in RevPAR for the week: San Diego (+0.9 percent); and Tampa-St. Petersburg, Florida (+0.4 percent).
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Jeff Higley (STR)
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