STR: US hotel performance for December 2016

HENDERSONVILLE, Tennessee -- The U.S. hotel industry reported mostly positive year-over-year results in the three key performance metrics during December 2016, according to data from STR.

Compared with December 2015, occupancy was nearly flat (-0.1% to 52.9%). However, average daily rate (ADR) rose 2.4% to US$119.01, and revenue per available room (RevPAR) grew 2.3% to US$62.98. December marked the industry's 82nd consecutive month with a year-over-year increase in RevPAR.

"After an outlier month (November), we returned to the new industry normal in December," said Jan Freitag, STR's senior VP of lodging insights. "This was the first December on record where the number of roomnights sold eclipsed 82 million, but overall growth (RevPAR: +2.3%) was well below the full 2016 average (+3.2%). The month's 1.8% supply increase was the highest for the industry since June 2010, and we expect further deceleration in performance growth as that supply growth continues to trend upwards."

Among the Top 25 Markets, San Diego, California, posted the only double-digit increase in ADR (+10.8% to US$136.10), which was the primary driver of the month's largest year-over-year increase in RevPAR (+17.9% to US$90.54). Occupancy in the market was up 6.3% to US$66.5%.

Washington, D.C.-Maryland-Virginia, saw the largest increase in occupancy (+7.0% to 55.5%) as well as the only other double-digit lift in RevPAR (+12.5% to US$71.73).

New Orleans, Louisiana, reported the only double-digit drop in ADR (-10.6% to US$127.86) and the largest decrease in RevPAR (-17.3% to US$71.69). Occupancy in the market fell 7.5% to 56.1%.

Two additional markets experienced a double-digit decline in RevPAR: Houston, Texas (-16.7% to US$46.36), and Miami/Hialeah, Florida (-13.7% to US$158.80).

Houston reported the only double-digit occupancy decrease (-10.4% to 50.6%) year over year.

"RevPAR growth in the Top 25 Markets (+0.2%) was significantly lower than all other markets (+3.8%)," Freitag said. "That is clearly a function of more supply growth in the larger markets, especially the likes of New York City and Miami."

New York, New York, reported the highest absolute levels across the three key metrics: occupancy (87.7%), ADR (US$298.11) and RevPAR (US$261.36).