Finance & DevelopmentFinanceADR Continues to Propel Hotel Performance in Early 2015

ADR Continues to Propel Hotel Performance in Early 2015

NEW YORK—Hotels in major North American markets continued to maintain positive growth in rate across all travel segments, according to data from the February 2015 TravelClick North American Hospitality Review (NAHR). Overall, average daily rate (ADR) growth continues to be the metric for growth, requiring hotels to be vigilant in monitoring their local markets.

“As travelers deal with the deep freeze of the winter months, hoteliers come to rely on ADR to drive hotel performance and sustain positive revenue per available room (RevPAR),” said John Hach, senior vice president of global product management at TravelClick. “Looking ahead, the pace of group bookings in Q2 shows a decline; however, we are not overly concerned, as most market segments remain relatively strong.

For the next 12 months (February 2015–January 2016), overall committed occupancy is up 1.8 percent when compared to the same time last year. ADR is up 4.7 percent based on reservations currently on the books.

Transient bookings are up 2.2 percent year-over-year and ADR for this segment is up 5.4 percent. When broken down further, the transient leisure (discount, qualified, and wholesale) segment is showing occupancy gains of 2.4 percent and ADR gains of 4 percent. Transient business (negotiated and retail) segment occupancy is up 2.1 percent and ADR is up 6.4 percent. Group segment occupancy is ahead by 1.6 percent and ADR is up 3.4 percent, compared to the same time last year.

“Given that this has been one of the worst winters on record for many parts of the country, it is encouraging to see that occupancy for Q1 remains stable,” Hach said.

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