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Hotel Industry


STR reports first quarter results for 2010

eTN Staff Writer  Apr 23, 2010

The US hotel industry reported mixed results in the three key performance metrics for first quarter 2010 in year-over-year measurements, according to data from STR.

The industry’s occupancy was up 2.3 percent to 51.9 percent, average daily rate fell 4.3 percent to US$96.27, and revenue per available room decreased 2.1 percent to US$50.01.

“Though first quarter comps were easy, the baseline trends are encouraging nonetheless,” said Bobby Bowers, senior VP at STR. “Room supply growth is slowing and demand (rooms sold) is growing – March was the fourth consecutive month with increased demand. Additionally, after 18 consecutive months of declines, March room revenue increased by 6.6 percent. Clearly, we have miles to go, but these are steps in the right direction.”

Among the Chain Scale segments, the luxury segment was the only one to report increases in two of the three key performance metrics. The segment rose 10.6 percent in occupancy to 63.1 percent, and RevPAR was up 3.1 percent to US$155.68.

Among the Top 25 Markets, three reported occupancy increases of more than 10 percent: Boston, Massachusetts (+15.1 percent to 54.6 percent); Detroit, Michigan (+11.7 percent to 47.6 percent); and New York, New York (+11.6 percent to 72.0 percent). Houston, Texas (-9.5 percent to 56.3 percent) and Norfolk-Virginia Beach, Virginia (-5.7 percent to 40.2 percent) were the only two markets to experience occupancy decreases during the quarter.

Miami-Hialeah, Florida, was the only market to post an ADR increase, rising 4.0 percent to US$182.70. Four markets reported ADR decreases of more than 10 percent: Tampa-St. Petersburg, Florida (-15.1 percent to US$101.59); Washington, DC (-12.6 percent to US$141.58); Phoenix, Arizona (-10.7 percent to US$120.49); and Chicago, Illinois (-10.3 percent to US$93.04).

Miami-Hialeah experienced the only double-digit RevPAR increase, jumping 14.1 percent to US$142.41, followed by Boston with an 8.6-percent increase to US$65.21. Houston reported the largest RevPAR decrease, dropping 16.8 percent to US$50.90, followed by Washington, DC (-12.6 percent to US$83.53), and Tampa-St. Petersburg (-12.5 percent to US$63.98).

ABOUT STR

STR provides clients — including hotel operators, developers, financiers, analysts, and suppliers to the hotel industry — access to hotel research with regular and custom reports covering North America, Mexico, and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline, and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.str.com .

STR reports first quarter results for 2010
Image via str.com



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