STR: US hotel performance for Q2 2016
HENDERSONVILLE, Tennessee -- The U.S. hotel industry reported positive results in the three key performance metrics for the second quarter of 2016, according to data from STR.
Compared with Q2 2015, the U.S. hotel industry's occupancy was almost flat (+0.6% to 69.4%). Average daily rate was up 2.9% to US$124.47. Revenue per available room increased 3.5% to US$86.33.
Also during the second quarter, industry demand (+2.1%) outpaced supply (+1.5%).
"Demand and occupancy were the highest STR has ever recorded for a second quarter," said Bobby Bowers, STR's senior VP for operations. "At the same time, hoteliers did not appear to take advantage of that pricing power as the 2.9% increase in ADR was the lowest of any quarter since the fourth quarter of 2010. As a result, the 3.5% lift in RevPAR was the lowest for a second quarter since 2009."
Three Top 25 Markets experienced a double-digit lift in RevPAR for the quarter: Dallas, Texas (+12.1% to US$80.64); Los Angeles/Long Beach, California (+11.1% to US$140.60); and Nashville, Tennessee (+10.6% to US$115.28).
Los Angeles/Long Beach posted the largest rise in ADR, up 9.4% to US$171.05.
Phoenix, Arizona (+5.9% to 67.6%), saw the largest increase in occupancy, followed by Dallas (+5.7% to 76.9%).
Houston, Texas, experienced the steepest declines in occupancy (-6.9% to 66.2%) and RevPAR (-8.0% to US$73.29).
New York, New York, reported the largest drop in ADR, down 3.1% to US$268.39.
"Despite the decrease, New York's absolute value for ADR was the highest of any of the Top 25 Markets," Bowers said. "The same was true for occupancy (88.2%) in the market."
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Additional Performance Data
Are you a member of the media looking for performance data for a hotel market not included in this release? STR's sample comprises more than 54,000 hotels and 7.3 million hotel rooms around the globe. Please refer to the contacts listed below for additional data requests.
Jeff Higley (STR)
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Phone: +1 (615) 824-8664 ext. 3318
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.