U.S. hotel performance for 2009 by quarter (in year-over-year comparisons)

The U.S. hotel industry reported decreases in all three key performance metrics for fourth-quarter 2009 in year-over-year measurements, according to data from STR.

The industry’s occupancy dropped 4.4 percent to 50.6 percent, average daily rate fell 7.6 percent to US$95.79, and revenue per available room decreased 11.7 percent to US$48.50.

“Fourth-quarter U.S. industry performance declines slowed, but RevPAR was still down nearly 12 percent,” said Bobby Bowers, senior vice president at STR. “Supply growth seems stuck at more than 3 percent while demand (roomnights sold) had its best quarterly performance of 2009 – down 1.4 percent.

“Occupancy is beginning to show some traction; 11 of the Top 25 Markets experienced occupancy gains in the fourth quarter,” Bowers continued. “ADR continues to present a challenge, down 7.6 percent in the quarter. We anticipate somewhat better performance in 2010, particularly in the second half.”

Among the Chain Scale segments, the Luxury segment was the only segment to report an increase in any of the three key metrics. The segment’s occupancy rose 1.4 percent to 60.6 percent. The Upper Upscale segment ended the quarter virtually flat with a 0.1-percent decrease to 61.1 percent.

Among the Top 25 Markets, New Orleans, Louisiana, was the only market to report increases in all three key metrics. The market’s occupancy rose 3.1 percent to 58.1 percent, ADR was up 0.2 percent to US$117.90, and RevPAR increased 3.3 percent to US$68.49.

Oahu Island, Hawaii, reported the largest occupancy increase, rising 5.7 percent to 74.0 percent. Houston, Texas, experienced the largest occupancy decrease, falling 27.0 percent to 51.5 percent due to the lingering effects of Hurricane Ike.

New Orleans was the only top market to report an ADR increase for the quarter. New York, New York, led the ADR decreases, falling 15.5 percent to US$254.22, followed by Houston (-15.1 percent to US$87.22) and Phoenix, Arizona (-14.5 percent to US$98.65).

Five markets experienced RevPAR declines of more than 15 percent: Houston (-38.0 percent to US44.91); Seattle, Washington (-18.0 percent to US55.59); Phoenix (-17.2 percent to US$50.36); Dallas, Texas (-16.7 percent to US$40.50); and Chicago, Illinois (-15.9 percent to US$63.29).