STR: U.S. Hotels Report Positive Performance in Q1 2019

Among the Top 25 Markets, San Francisco posted the largest lift in ADR, which resulted in the largest increase in RevPAR in Q1 2019.
Among the Top 25 Markets, San Francisco posted the largest lift in ADR, which resulted in the largest increase in RevPAR in Q1 2019.

HENDERSONVILLE, Tenn.—The U.S. hotel industry reported positive results in three key performance metrics during Q1 2019, according to data from STR. In a year-over-year comparison with Q1 2018, occupancy was up 0.4 percent to 61.8 percent; average daily rate (ADR) was up 1.1 percent to $129.02; revenue per available room (RevPAR) was up 1.5 percent to $79.68; and demand (up 2.4 percent) outgrew supply (up 2 percent) for the quarter.

While the absolute values in each of the three key performance metrics were the highest for any Q1 on record, year-over-year performance growth came in below projected levels.

“Q1 performance came in lower than forecasted as the industry reported its lowest RevPAR percentage change for an opening quarter since 2010,” said Bobby Bowers, STR’s senior vice president of operations. “What made the quarter even more underwhelming was the fact that year-over-year results received a lift from the Easter calendar shift as well as significant group performance gains in San Francisco, which is benefitting from an influx of business at the reopened Moscone Center. Overall, San Francisco accounted for 40 basis points of that 1.5 percent increase in the U.S.”

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Individual Market Performance 

Among the Top 25 Markets, as defined by STR, California’s San Francisco/San Mateo market posted the largest lift in ADR (up 15.9 percent to $270.23), which resulted in the largest increase in RevPAR (up 15.9 percent to $209.51).

The Tampa/St. Petersburg market in Florida experienced the highest rise in occupancy (up 2.4 percent to 81.2 percent).

Super Bowl LIII host Atlanta registered the second-largest jump in RevPAR (up 14.1 percent to $88.59), due primarily to the only other double-digit increase in ADR (up 12.7 percent to $126.19).

Due to comparison with its Super Bowl host year in 2018, the Minneapolis/St. Paul market reported the only double-digit decline in ADR (down 15 percent to $109.04) and the largest drop in RevPAR (down 19 percent to $63.20).

The Philadelphia market saw the largest decrease in occupancy (down 7.8 percent to 59.8 percent).

 


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