STR: U.S. hotel results for week ending 12 January
The U.S. hotel industry reported negative year-over-year results in the three key performance metrics during the week of 6-12 January 2019, according to data from STR.
In comparison with the week of 7-13 January 2018, the industry recorded the following:
- Occupancy:-5.9% to 53.5%
- Average daily rate (ADR): -2.3% to US$125.69
- Revenue per available room (RevPAR): -8.0% to US$67.21
Among the Top 25 Markets, San Francisco/San Mateo, California, reported the only increase in RevPAR (+13.8% to US$396.79), driven by the only double-digit lift in ADR (+13.9% to US$506.23). STR analysts note performance was helped by the 37th annual J.P. Morgan Healthcare Conference (7-10 January), the College Football Playoff National Championship (7 January) and comparison with a closure period for the Moscone Center last year.
None of the Top 25 Markets experienced an increase in occupancy.
Orlando, Florida, reported the steepest decline in RevPAR (-33.9% to US$85.92), due in part to the largest drop in ADR (-16.6% to US$126.55). The market registered the second-largest decrease in occupancy (-20.6% to 67.9%). STR analysts point to lower group (bookings of 10 or more rooms) demand as a factor in the overall performance decline.
Houston, Texas, experienced the steepest drop in occupancy (-21.9% to 52.0%) and the only other double-digit decline in ADR (-10.0% to US$96.47), which resulted in the second-largest decrease in RevPAR (-29.7% to US$50.19).
Washington, D.C.-Maryland-Virginia, registered the third-largest declines in each of the three key performance metrics: occupancy (-20.0% to 47.4%), ADR (-7.9% to US$124.32) and RevPAR (-26.3% to US$58.89). STR analysts note that government contractors postponing trips had an impact on hotel performance, as well as cancelled group travel due to the effects of the government shutdown.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.