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U.S. Hotel Industry Continues Climb Toward Full Recovery…

Posted on 27 January 2011

The U.S. hotel industry reported increases in all three key performance metrics for fourth-quarter 2010 in year-over-year measurements, according to data from STR. The industry’s occupancy increased 7.1 percent to 53.5 percent, average daily rate rose 1.9 percent to US$98.25, and revenue per available room was up 9.1 percent to $52.59.


“The U.S. hotel industry continued its steady climb toward full recovery in the fourth quarter of 2010,” said Bobby Bowers, senior VP at STR. “RevPAR gained more than 9 percent, driven by the highest quarterly occupancy growth (7.1 percent) STR has ever recorded.
“We expect continued RevPAR improvement in 2011, with greater contribution from ADR and continued but more moderate occupancy gains,” Bowers added. “Our current 2011 forecast calls for RevPAR growth of about 6 percent, driven primarily by ADR.”


Among the top 25 markets, five experienced occupancy increases of more than 10 percent: Detroit, Mich. (+14.8 percent to 52.8 percent); Orlando, Fla. (+12.0 percent to 62.4 percent); Phoenix, Ariz. (+11.8 percent to 56.8 percent); Atlanta, Ga. (+11.7 percent to 54.9 percent); and Dallas, Texas (+10.2 percent to 52.9 percent). None of the top markets reported occupancy decreases for the quarter.


New York City achieved the largest ADR increase, rising 8.2 percent to US$276.07, followed by Boston, Massachusetts, with a 5.0-percent increase to US$146.38. Philadelphia, Penn.-N.J. (-2.9 percent to US$109.25), and Nashville, Tenn. (-2.8 percent to US$88.15), reported the largest ADR decreases for the quarter.


Two markets reported RevPAR increases of more than 15 percent: Orlando (+17.1 percent to US$58.42) and Atlanta (+16.5 percent to US$45.80). Nashville was the only top market to report a RevPAR decrease (-1.0% to US$47.83).

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