Lodging Review Smith Travel Research First Quarter 2007 | STR Lodging Review – Special Analysis
Total U.S. room occupancy in the first three months of 2007 was 59.5 percent, nearly 1 percent below the same period last year although still the third highest for the quarter in the past ten years. The number of rooms sold increased only .3 percent from a year ago while supply rose more than 1 percent. Revenue per available room increased over 5 percent due entirely to the higher average room rate.
We analyzed the TRENDS by quarter for the past 10 years and discuss the results in detail in the special analysis that follows these introductory comments. Some highlights of the performance of the lodging industry in the first quarter of 2007 are as follows:
- The average room rate increased by over 6 percent to $102.71, the first time over $100 in the first quarter, and the highest we have reported. The rate change was the second highest in the last ten years.
- Room occupancy in the Top 25 Markets was 66.5 percent, a decrease of almost 1 percent from the same period a year ago. Room demand showed no change while the number of available rooms rose almost 1 percent. In All Other Markets occupancy dropped 1 percent as the slight improvement in demand (.4 percent) was offset by a rise of over 1 percent in the number of available rooms.
- Based on market share of supply, the Commercial hotel markets and those that cater to Both business and leisure travelers provided over one-half of the change in the national number of rooms sold while those properties in the Resort markets reported a significant drop compared to the first quarter of 2006.