The U.S. hotel industry revenue per available room dropped 18.7 percent to US$53.87 percent for the first half of 2009 in year-over-year measurements, according to data from STR. In year-over-year measurements, the industry’s occupancy dropped 10.9 percent to 54.6 percent and average daily rate fell 8.7 percent to US$98.66.
As the U.S. lodging industry moves into the second half of 2009, it’s a good opportunity to review first-half market performance and look for clues to what’s ahead. By almost any measure, 2009 has been an extraordinarily challenging year. A weak economy combined with unemployment levels not seen in more than 25 years have been a gut shot to the hotel industry. Based on May year-to-date numbers, demand (rooms sold) declined more than 9 percent in the top 25 markets (excluding Las Vegas) and just under 8 percent in smaller markets (the remaining 136 U.S. markets tracked by Smith Travel Research). At the same time, room supply increased more than 3 percent in both the top 25 markets and all other markets. The combination of weak demand and above-long-term-trend supply growth pushed occupancy down nearly 12 percent in the top 25 and almost 11 percent elsewhere.
The U.S. hotel industry posted declines in all three key performance measurements during the week of 12-18 July 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 8.9 percent to end the week at 66.2 percent. Average daily rate dropped 9.4 percent to finish the week at US$97.33. Revenue per available room for the week decreased 17.5 percent to finish at US$64.41.
Ground-up development is rolling at Concord Hospitality. The Raleigh, North Carolina-based hotel management and development company added three new hotels to its 51-hotel portfolio in the past six weeks, and it expects to add at least six more by the end of the year.
The U.S. hotel industry posted declines in all three key performance measurements during the week of 5-11 July 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 9.7 percent to end the week at 60.3 percent. Average daily rate dropped 9.6 percent to finish the week at US$93.97. Revenue per available room for the week decreased 18.4 percent to finish at US$56.65.
According to a survey conducted by Colliers International Hotels and HLT Advisory, the economic recovery is unlikely to benefit the Canadian hotel industry until 2010. The survey of 325 hotel owners, managers and advisors found that 59 per cent of respondents anticipate seeing clear signs of economic recovery in 2010, with only one-fifth (19%) of respondents expecting a recovery this year.
Mark Woodworth, president of PKF Hospitality Research, discussed the firm's revised forecasts during a break at the AH&LA Summer Summit.
The U.S. hotel industry posted declines in all three key performance measurements during the week of 28 June-4 July 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 6.0 percent to end the week at 57.7 percent. Average daily rate dropped 7.4 percent to finish the week at US$95.16. Revenue per available room for the week decreased 13.0 percent to finish at US$54.94.
The total active U.S. hotel development pipeline includes 4,907 projects with 522,778 rooms, according to the May 2009 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 22.2-percent decrease in the number of rooms in the total active pipeline compared to May 2008. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.
The Canadian hotel industry posted decreases in all three key performance measurements during the week of 31 May-6 June, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 12.8 percent to end the week at 64.8 percent. Average daily rate dropped 14.8 percent to finish the week at CAD$130.18. Revenue per available room for the week decreased 25.8 percent to finish at CAD$84.30.
The U.S. hotel industry posted declines in all three key performance measurements during the week of 31 May-6 June 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 13.9 percent to end the week at 56.6 percent. Average daily rate dropped 10.5 percent to finish the week at US$95.90. Revenue per available room for the week decreased 22.9 percent to finish at US$54.24.
PKF Hospitality Research (PKF-HR) today announced that, according to its June 2009 edition of Hotel Horizons®, rooms revenue per available room (RevPAR) will reach its cyclical low point in the third quarter of 2009. This will bring to a close the escalating trend of declines in RevPAR that began in the third quarter of 2008, according to Smith Travel Research (STR). In May 2009, Moody’s Economy.com downgraded its outlook of a 2.9 percent national employment decline to 3.8 percent, causing PKF-HR to revise its RevPAR forecast for the year. Given the correlation between employment and lodging demand, the new expectation is for RevPAR to decline 17.5 percent in 2009, followed by another 3.5 percent decline in 2010.
More than 300 properties representing 158,300 rooms are defined as destination resorts in STR’s U.S. lodging census database. We classify these resorts as full-service upscale (chain scale) and above or upper-tier independent hotels. This exclusive group of properties is appealing to leisure and family vacation-oriented travelers, located in “resort” locales and is considered a group of self-contained destinations typically offering golf, tennis, ski, spa and beach-related amenities. More than 41 percent of resorts rooms are located in Florida followed by California with 12.2 percent.
Customer satisfaction with hotels remained strong (unchanged at 82.9) but airlines (-1.9 to 75.8) and rental car (-0.3 to 79.0) scores declined in the first quarter of 2009. Mandarin Oriental Hotels, JetBlue Airlines, and Enterprise Rent-a-Car ranked number one in hotel, airline, and rental car industry customer satisfaction, respectively.
HVS Global Hospitality Services, in cooperation with New York University’s Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management, is pleased to present the twelfth annual Manhattan Hotel Market Overview. For most U.S. hotel markets, 2008 represented the first year of the recession; however, the Manhattan lodging market was able to weather the economic downturn during the first nine months of the year and closed 2008 with moderate growth, remaining the top-performing market in the U.S. An analysis of the monthly trends for 2008 reveals that the Manhattan market experienced a RevPAR increase of 9.0% through September, followed by its first decrease in RevPAR since June 2003 as the economic recession heightened
Jones Lang LaSalle Hotels today released its bi-annual Hotel Investor Sentiment Survey which shows hotel investors’ sentiment for short–term performance ?defined as six-months? declined to a new low, reaching -57.5 percent in the Americas compared with previous sentiment of -52.5 percent following 9/11. Investors’ short-term sentiment for industry performance remains subdued as economic strain continues to weigh down hotel markets across the Americas.
The Canadian hotel industry posted decreases in all three key performance measurements during the week of 10-16 May, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 11.2 percent to end the week at 61.1 percent. Average daily rate dropped 8.8 percent to finish the week at CAD$124.96. Revenue per available room for the week decreased 19.0 percent to finish at CAD$76.41.
The Canadian hotel industry posted decreases in all three key performance measurements during the week of 3-9 May, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 12.6 percent to end the week at 59.4 percent. Average daily rate dropped 7.3 percent to finish the week at CAD$125.61. Revenue per available room for the week decreased 19.1 percent to finish at CAD$74.61.
The U.S. hotel industry posted declines in all three key performance measurements during the week of 3-9 May 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 14.0 percent to end the week at 53.6 percent. Average daily rate dropped 9.8 percent to finish the week at US$97.58. Revenue per available room for the week decreased 22.4 percent to finish at US$52.32. Of the Top 25 Markets, Nashville, Tennessee, was the only market to report a increase in any of the three key performance measurements, increasing in ADR 0.3 percent to US$101.66.
STR projects a 9.8-percent year-over-year decline in revenue per available room for 2009, and it expects a 1.5-percent increase in 2010, according to the latest data released from the Hendersonville-based company. A difficult environment resulted in a 17.7-percent RevPAR decline in the first quarter of 2009 and led to the company revising its forecast. STR expects the second quarter to continue to be challenging before the industry’s performance slows its slide during the third and fourth quarters.