STR posts U.S. Hotel Performance for March 2009
“Performance results for March continue to show sharp drops in the key measures of occupancy and ADR,” said Mark Lomanno, president of STR. “However, we have begun to believe that the industry may have bottomed out from a demand perspective. Over the past two months, the number of rooms sold has remained fairly consistent after the accelerating drops experienced beginning in September 2008 though January 2009. Knowing that the trough in the cycle has been reached gives hope that the beginnings of a modest recovery may not be far away.”
During March, none of the Top 25 Markets reported increases in any of the three key performance measurements. In occupancy, only six of the markets ended the month with single-digit decreases. Orlando, Florida, reported the largest decrease in occupancy, which was down 17.9 percent to 67.2 percent. Three other markets reported occupancy decreases of more than 15 percent, including Detroit, Michigan (-17.1 percent to 45.0 percent); New Orleans, Louisiana (-16.8 percent to 62.9 percent); and San Diego, California (-15.6 percent to 61.9 percent). The largest decrease in ADR was reported by New York, New York, which experienced a 24.4-percent drop to US$193.19. Miami-Hialeah, Florida (-18.2 percent to US$170.93) and Phoenix, Arizona (-15.4 percent to US$133.23) also reported large decreases in ADR. Six markets reported RevPAR decreases of more than 25 percent: New York (-35.5 percent to US$135.99); Miami-Hialeah (-28.5 percent to US$126.80); Orlando (-27.9 percent to US$71.28); Detroit (-25.4 percent to US$35.08); San Diego (-25.4 percent to US$76.49); and Chicago, Illinois (-25.1 percent to US$55.24).
For the first quarter of 2009, the U.S. hotel industry experienced declines in all three key performance metrics when compared to first quarter 2008. Occupancy was down 10.9 percent to 51.4 percent (57.7 percent in 2008). ADR decreased 7.7 percent to US$100.13 (US$108.46 in 2008). RevPAR dropped 17.7 percent, ending the quarter at US$51.44 (US$62.54 in 2008).
About STR & STR Global: For more than 20 years, Smith Travel Research has been the recognized leader for lodging industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 36,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tennessee, and STR Global is based in London. For more information, visit .
Jeff Higley (STR)
VP, Digital Media & Communications
Phone: +1 (615) 824-8664 ext. 3318