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Independent Hotels See Higher ADRs And Faster Growth

Independent Hotels See Higher ADRs And Faster Growth

Independent hotel properties are continuing to show positive ADR growth compared to branded properties, according to a report based on Expedia’s Q1 2017 data. The data suggests an ongoing trend of strong performance by independent hotels—since Q1 2014, independent hotel ADR growth has increased at twice the rate of ADR growth for branded properties.

“Online marketplaces have helped independent hotels gain access to a global travel audience, and insight tools, that in the past, were more exclusively advantages for brands,” said Mark Morrison, Expedia’s vice president of owner services. “Couple this with the massive rise in desire for travel and experiences among both international and domestic travelers, and the ease with which travelers can now discover and book hotels, and we’re seeing a democratization based on visibility, quality, unique selling attributes, and traveler needs.”

The markets with the most volume of independent hotel bookings are also the leading markets in overall booking volume—Las Vegas, Manhattan, Miami, Orlando, and Los Angeles. Las Vegas independent properties’ ADRs are up more than 10 percent year-over-year, driven largely by international guests. Cancellation rates for independent properties in Miami saw a 10 percent decline year-over-year, while the average booking window reached nearly 30 days. Los Angeles independent hotels grew ADR 5 percent year-over-year—more than double the growth of branded properties.

The trend is reaching smaller markets as well: Central Valley North, California independent hotels increased nearly 110 percent year-over-year; Rochester, Minnesota increased 80 percent; Prescott, Arizona increased almost 75 percent; Kauai, Hawaii increased nearly 65 percent; and Charlottesville, Virginia increased about 65 percent year-over-year.

In particular, mobile-savvy customers are increasingly booking independent hotels. The share of room nights booked via mobile grew roughly 15 percent year-over-year for independent properties, and volume growth via mobile went up nearly 25 percent. Overall, mobile demand growth for independents outpaced branded properties in four of the five biggest markets.

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