Finance & DevelopmentFinanceSTR: U.S. Hotel Occupancy, ADR, and RevPAR Up in April 2019

STR: U.S. Hotel Occupancy, ADR, and RevPAR Up in April 2019

HENDERSONVILLE, Tennessee—The U.S. hotel industry reported positive results in the three key performance metrics during April 2019, according to data from STR.

In a year-over-year comparison with April 2018, the industry posted the following:

  • Occupancy — up 0.3 at 68.0 percent
  • Average daily rate (ADR) — up 0.9 percent to $131.85
  • Revenue per available room (RevPAR) — up 1.2 percent to $89.67

“Considering that the Easter calendar shift pulled group occupancy down 6.3 percent, any increase in nationwide RevPAR would have been considered respectable—so it’s fair to say that the 1.2 percent increase was a pleasant surprise,” said Jan Freitag, STR’s senior vice president of lodging insights. “All told, April was very aligned with recent trends. The industry set another monthly demand record but saw a lack of meaningful growth in room rates. The 12-month moving average for ADR growth now stands at 1.9 percent, the first time since early 2011 that this measure has shown sub-2 percent growth.”

The industry has now posted year-over-year RevPAR growth for 109 of the past 110 months. The longest overall expansion cycle in industry history lasted 112 months from December 1991 through March 2001.

Leading U.S. Markets in April 2019

Among STR’s Top 25 Markets, the Minneapolis/St. Paul, Minnesota-Wisconsin market registered the largest jump in RevPAR (up 17.1 percent to $91.67), driven by the largest increase in ADR (up 15.1 percent to $134.86).

Los Angeles/Long Beach, California, experienced the highest rise in occupancy (up 3.2 percent to 81.8 percent).

Norfolk/Virginia Beach, Virginia, reported the only other double-digit increases in ADR (up 10.4 percent to $104.29) and RevPAR (up 12.8 percent to $71.85).

New Orleans, Louisiana, posted the largest decrease in RevPAR (down 9.0 percent to $126.03), due primarily to the steepest drop in ADR (down 6.7 percent to $163.77).

Detroit, Michigan, saw the largest decrease in occupancy (down 6.1 percent to 64.5 percent).

“While we’re forecasting positive performance for the year, we’re keeping an eye on the development pipeline and increased construction activity,” Freitag said. “Supply growth has already impacted performance in many major markets, especially in the limited- and select-service segments, and we do not expect this trend to change. Add that to sometimes steep increases in labor cost, and hoteliers are feeling a lot of pressure on their bottom line.”

 


Keep up with the industry.

Subscribe to LODGING

RELATED ARTICLES

Wyndham Announces Partnership With Cygnett

DELHI—Wyndham Hotels & Resorts announced a new strategic alliance with Cygnett Hotels & Resorts that will not only introduce its La Quinta by Wyndham...

New Pyramid Global Hospitality COO Continues Focus on Big Data to Benefit Owners

Pyramid Global Hospitality Chief Operating Officer Eric Habermann retired in April following seven years with the company and a nearly 40-year career in hospitality....

Grand Hyatt Kauai Resort & Spa Launches Scholarship Program

Grand Hyatt Kauai Resort & Spa, a 605-room resort, announced the launch of a scholarship program to support the continued education of its colleagues...

Hilton Surpasses 500 Hotels in Florida

MCLEAN, Virginia, and MIAMI, Florida—Hilton announced a major milestone as the company surpassed 500 open hotels across Florida. This growth was fueled in part...

Hunter Hotel Advisors Brokers Sale of Residence Inn Detroit Novi

ATLANTA, Georgia—Hunter Hotel Advisors (Hunter) announced the successful sale of the 107-key Residence Inn Detroit Novi. Spark GHC purchased the property from an institutional...

PMZ Realty Capital Arranges Loan for Hampton Inn Marysville

PMZ Realty Capital LLC announced that it has secured a $5.3 million loan for the Hampton Inn Marysville, located in Marysville, Ohio. The loan...