STR reports US performance for June 2009
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).
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 16 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.