STR Reports Increases in All Areas for U.S. Hotel Industry

The U.S. hotel industry posted increases in all three key performance measurements during July 2010, according to data from STR. In year-over-year measurements, the industry’s occupancy was up 7 percent to 67.9 percent, average daily rate ended the month with a 1.3 percent increase to $99.14, and revenue per available room for the month rose 8.5 percent to finish at $67.35.

“The U.S. hotel industry’s performance recovery continued very nicely in July,” said Mark Lomanno, president of STR. “The demand for rooms continued to be well above 2009 levels, and we are finally beginning to see signs of room rate recovery, especially in the higher end of the market. In the coming months, we hope to see more balanced RevPAR growth as operators begin to accelerate room rate growth.”

Among the Top 25 Markets, all but one market reported occupancy increases and eight top markets reported double-digit increases. Detroit, Mich., led the occupancy increases, rising 20.9 percent to 61.5 percent, followed by Oahu Island, Hawaii (up 15.9 percent to 89.6 percent); and New Orleans (up 13.1 percent to 72.6 percent).

Phoenix, Ariz., posted the only occupancy decrease, falling 1.4 percent to 43.6 percent. New York City achieved the highest and only double-digit ADR increase, rising 11.6 percent to $204.68. Dallas reported the largest ADR decrease, falling 4.1 percent to $77.72, followed by Nashville, Tenn. (down 3.3 percent to $82.94), and Houston (down 3.2 percent to $83.12).

Five top markets experienced RevPAR increases of more than 15 percent: Oahu Island (up 20.8 percent to $139.58), New Orleans (up 17.9 percent to $77.82), Detroit (up 17.7 percent to $45.57), New York City (up 16.3 percent to $170.67), and Denver (up 15.6 percent to $74.03). Phoenix posted the largest RevPAR decrease, falling 4.2 percent to $31.91, followed by Houston with a 1.7 percent decrease to $46.03.