STR: Hotel Industry Posts Positive Performance for First Month of 2020

“The obvious concern is whether we will see coronavirus effects on U.S. performance that is already forecasted to be lackluster for 2020," said Jan Freitag, STR’s SVP of lodging insights.

Business Travel

HENDERSONVILLE, Tenn. — The U.S. hotel industry reported positive results across three key performance metrics during January 2020, according to data from STR. Compared with January 2019, occupancy increased 0.8 percent to 55.1 percent, average daily rate (ADR) grew 1.4 percent to $126.06, and revenue per available room (RevPAR) jumped 2.2 percent to $69.47.

“The industry opened 2020 with records across the key performance metrics and fairly substantial year-over-year growth when considering recent trends,” said Jan Freitag, STR’s senior vice president of lodging insights. “The obvious concern is whether we will see coronavirus effects on U.S. performance that is already forecasted to be lackluster for 2020. To this point into February weekly data, there has not been a noticeable impact, but that is expected to change at some point amid a significant drop in Chinese arrivals, especially in gateway cities. As of right now, STR’s 2020 RevPAR forecast for the U.S. remains at 0 percent.”

Overall, 19 of the Top 25 Markets reported a RevPAR increase in January 2020. Miami/Hialeah, Fla., which hosted Super Bowl LIV, posted the largest jump in RevPAR (up 18.6 percent to $215.89), driven by the only double-digit lift in ADR (up 14.5 percent to $266.32). During Super Bowl weekend, which began on the last day of the month, Miami hotel performance exceeded projections and reached record levels in both average daily rate (ADR) and revenue per available room (RevPAR), according to an analysis by STR’s Consulting & Analytics office.

Advertisement

St. Louis, Missouri-Illinois, experienced the highest rise in occupancy (up 7.6 percent to 49.6 percent) and the second-largest increase in RevPAR (up 14 percent to $49.69). Oahu Island, Hawaii, recorded the only other double-digit gain in RevPAR (up 12.9 percent to $223.33).

Detroit registered the largest drop in RevPAR in January 2020 (down 13.7 percent to $50.60), due primarily to the only double-digit decrease in ADR (down 12.2 percent to $96.28). Last year’s Super Bowl host, Atlanta, saw the largest decline in occupancy (down 4.8 percent to 62.4 percent). RevPAR in the market decreased 12.3 percent to $71.97.

 

 


Subscribe to Lodging Daily News for updates.

SUBSCRIBE