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US Hotel Performance
According to the latest data from STR Global the U.S. hotel industry reported increases in all three key performance metrics during February 2013.
The firm reports a 2% growth in nationwide hotel occupancy to 58.5%, a 4.4% increase in average daily rate (ADR) to $107.72 and a 6.4% growth in revenue per available room (RevPAR) to $63.04.
"After posting a nearly 9-percent RevPAR increase in January, February growth is back to similar levels we saw in 2012,” said Brad Garner, STR's COO. "ADR growth is the primary driver for RevPAR performance across all segments. Additionally, low supply growth and modest demand continue to help occupancy rates."
Among the Top 25 Markets, Houston, Texas, reported the largest occupancy increase, rising 9.4 percent to 74.9 percent, followed by Denver, Colorado (+6.7 percent to 61.7 percent), and Minneapolis-St. Paul, Minnesota-Wisconsin (+6.2 percent to 59.8 percent). Norfolk-Virginia Beach, Virginia, fell 5.1 percent in occupancy to 43.2 percent, posting the largest decrease in that metric. San Diego, California, followed with a 1.0-percent decrease to 68.0 percent.
Three markets experienced double-digit ADR increases:
The only market to experience a drop in ADR was California, falling 2.6 percent to US$163.58.
New Orleans jumped 33.0 percent in RevPAR to US$136.38, achieving the largest increase in that metric, followed by Oahu Island (+23.6 percent to US$187.79) and Houston (+20.8 percent to US$80.11). The only drop in RevPAR was in Norfolk-Virginia Beach where revenue fell 3.7 percent to US$29.53.
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*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.