STR reports U.S. hotel industry performance results for first-half 2009
In the second quarter of 2009, occupancy fell 10.9 percent to 57.8 percent, ADR dropped 9.7 percent to US$97.37, and RevPAR decreased 19.5 percent to US$56.25.
“The first half of 2009 was, without question, one of the most challenging the U.S. lodging industry has experienced,” said Bobby Bowers, senior vice president of operations at STR. “RevPAR fell nearly 19 percent–by far the largest first-half decline ever recorded by Smith Travel Research. While there is some evidence that industry performance has bottomed, hotel operators will continue to face harsh operating conditions—particularly from a pricing perspective—in the second half. STR is currently forecasting a total industry RevPAR decline of about 17 percent for full-year 2009.”
In the first half of 2009, none of the Top 25 Markets reported increases in any of the three key measurements. Washington, D.C., experienced the smallest decreases in all three metrics among the markets: Occupancy fell 3.9 percent to 66.8 percent, ADR decreased 2.2 percent to US$154.34, and RevPAR dropped 6.0 percent to US$103.16.
Detroit, Michigan, reported the largest occupancy decrease, falling 16.9 percent to 46.7 percent, followed by Phoenix, Arizona, with a 15.2-percent decline to 57.0 percent.
Three markets, excluding Washington, D.C., reported ADR decreases of less than 5 percent: Nashville, Tennessee (-4.8 percent to US$91.72); New Orleans, Louisiana (-4.8 percent to US$120.58); and Houston, Texas (-4.0 percent to US$96.26). New York, New York, posted the largest ADR decrease for the first half of the year, dropping 24.4 percent to US$198.55, followed by Phoenix (-15.4 percent to US$119.80) and San Francisco/San Mateo, California (-15.0 percent to US$130.94).
Thirteen of the Top 25 Markets experienced RevPAR decreases of more than 20 percent for the first half of the year. New York led the declines with a 32.5-percent decrease to US$144.18. Two other markets posted decreases of more than 25 percent: Phoenix (-28.3 percent to US$68.23) and Chicago, Illinois (-27.3 percent to US$59.42).
Rachael Spann Urie
Phone: +1 (615) 824-8664 ext. 3305
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.