Finance & DevelopmentFinanceSTR: U.S. Hotels Report Positive Performance in Q1 2019

STR: U.S. Hotels Report Positive Performance 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.”

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).

 


Keep up with the industry.

Subscribe to LODGING

RELATED ARTICLES

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...

LivAway Suites Breaks Ground on New Property in Tucson, Arizona

SALT LAKE CITY, Utah—LivAway Suites announced the groundbreaking of its newest property in Tucson, Arizona, which marks its fourth in the state over the...