HENDERSONVILLE, Tennessee—The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during 2016, according to data from STR.
Compared with 2015, occupancy was nearly flat (+0.1% to 65.5%), and average daily rate (ADR) rose 3.1% to US$123.97. As a result, revenue per available room (RevPAR) grew 3.2% to US$81.19.
The absolute values in the three key performance metrics were each the highest STR has ever benchmarked. The U.S. hotel industry also set records for supply (more than 1.8 billion roomnights) and demand (more than 1.2 billion roomnights). Based on percentage growth for the year, demand (+1.7%) slightly outpaced supply (+1.6%). The supply growth figure was the largest for the industry since 2010.
“In general, we view 2016 as an average year for the U.S. hotel industry,” said Amanda Hite, STR’s president and CEO. “The three key performance metrics hit record highs, but at the same time, RevPAR growth (+3.2%) was just below the 30-year U.S. average (+3.3%). Looking ahead in 2017, we expect that growth to decelerate further as supply overtakes demand in terms of growth.”
Among the Top 25 Markets, Los Angeles/Long Beach, California, posted the year’s only double-digit increase in RevPAR (+10.8% to US$139.65). The increase was primarily driven by the largest rise in ADR (+8.5% to US$171.80). Occupancy in the market was up 2.2% to 81.3%.
Norfolk/Virginia Beach, Virginia, saw the largest occupancy increase (+5.0% to 59.9%) and the second largest lift in RevPAR (+8.2% to 59.46).
Overall, 20 of the Top 25 Markets recorded year-over-year RevPAR growth for the year.
Houston, Texas, reported the steepest declines in each of the three key performance metrics. Occupancy in the market fell 9.1% to 62.3%, ADR was down 3.6% to US$104.65 and RevPAR dropped 12.4% to US$65.15.
Miami/Hialeah, Florida, was the only other market to report decreases across each of the three metrics. Occupancy decreased 2.7% to 75.9%, ADR dropped 2.9% to US$189.77 and RevPAR fell 5.5% to US$143.95.
In absolute values, New York, New York, recorded the highest levels in occupancy (85.9%), ADR (US$259.14) and RevPAR (US$222.54).
Q4 2016
During the fourth quarter of 2016, the U.S. hotel industry reported positive year-over-year results in the three key performance metrics. Occupancy rose 0.6% to 60.7%, ADR was up 2.6% to US$122.25 and RevPAR increased 3.2% to US$74.25.
Among the Top 25 Markets, Norfolk/Virginia Beach experienced the largest increases in occupancy (+9.4% to 53.6%) and RevPAR (+11.9% to US$44.51). ADR in the market was up 2.2% to US$83.06.
Los Angeles/Long Beach posted the quarter’s largest rise in ADR (+5.8% to US$162.74).
Houston reported the largest decreases in each of the three metrics. Occupancy fell 11.0% to 57.2%, ADR was down 6.9% to US$99.05 and RevPAR declined 17.2% to US$56.67.
The only other double-digit decrease in the three key metrics came in Miami/Hialeah (RevPAR: -12.2% to US$131.39).
North America Media Contacts:
Jeff Higley
VP, Digital Media & Communications
jhigley@str.com
+1 (615) 824-8664 ext. 3318
Nick Minerd
Public Relations Manager
nminerd@str.com
+1 (615) 824-8664 ext. 3305
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