US Hotel Industry

US hotel industry begins 2009 in the red

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By eTN Staff Writer | Jan 11, 2009

The hotel industry in the United States experienced declines in three key performance measurements during the week of 28 December 2008-03 January 2009, according to data from the Smith Travel Research (STR).

According to STR’s research, revenue per available room fell 3.6 percent from the comparable period a year ago to finish the week at US$44.40 (US$46.05 in 2007-2008). The industry’s occupancy for the week dropped 0.5 percent to end at 42.9 percent (43.1 percent in 2007-2008), while average room rate declined 3.2 percent to complete the week at US$103.43 (US$106.80 in 2007-2008).

The performances of the chain-scale segments varied:
· Luxury segment: occupancy +2.5 percent (55.2 percent); average daily room rate (ADR) -10.0 percent (US$322.31); revenue per available room (RevPAR) -7.7 percent (US$178.06).
· Upper Upscale segment: occupancy -1.4 percent (45.8 percent); ADR -7.1 percent (US$145.88); RevPAR -8.4 percent (US$66.84).
· Upscale segment: occupancy -3.3 percent (39.2 percent); ADR -7.6 percent (US$104.35); RevPAR -10.6 percent (US$40.86).
· Midscale with Food and Beverage segment: occupancy -3.1 percent (37.7 percent); ADR -0.3 percent (US$83.42); RevPAR -3.4 percent (US$31.46).
· Midscale without Food and Beverage segment: occupancy -2.1 percent (38.6 percent); ADR -2.3 percent (US$81.66); RevPAR -4.4 percent (US$31.50).
· Economy segment: occupancy -1.2 percent (42.0 percent); ADR -0.5 percent (US$52.63); RevPAR -1.7 percent (US$22.09).
· Independents segment: occupancy +2.4 percent (46.8 percent); ADR -1.5 percent (US$108.61); RevPAR +0.8 percent (US$50.80).

STR found that among top 25 markets, seven achieved RevPAR gains, including San Francisco/San Mateo, California (+12.4 percent); Orlando, Florida (+11.2 percent); and New York, New York (+7.1 percent). Houston, Texas (+6.3 percent) and New York, (+1.2 percent) were the only two top 25 market to report a gain in ADR. Eleven of the top 25 markets experienced gains in occupancy, including San Francisco/San Mateo (+17.5 percent); Orlando (+14.7 percent); and San Diego, California (+11.2 percent).