STR reports first-half 2010 results
The U.S. hotel industry reported mixed results in the three key performance metrics for the first half of 2010 in year-over-year measurements, according to data from STR.
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported mixed results in the three key performance metrics for the first half of 2010 in year-over-year measurements, according to data from STR.
The industry’s occupancy was up 4.4 percent to 56.4 percent, average daily rate fell 2.0 percent to US$97.18, and revenue per available room increased 2.3 percent to US$54.80.
In second-quarter 2010, occupancy increased 6.2 percent to 60.7 percent, ADR ended the quarter flat at US$97.87, and RevPAR increased 6.2 percent to US$59.44.
“First-half and second-quarter U.S. hotel industry performance demonstrated marked improvement from 2009—particularly on the demand (rooms sold) front,” said Bobby Bowers, senior VP at STR. “Second-quarter room demand increased 8.7 percent—the industry’s largest quarterly demand increase since STR began tracking performance in 1987. ADR growth is slowly improving, primarily at the upper-end, and we expect continued gradual improvement through the second half. We’re forecasting full-year 2010 RevPAR growth of just over 5 percent, driven almost exclusively by occupancy gains.”
In the first half of 2010, 23 of the Top 25 Markets experienced occupancy increases. Boston, Massachusetts, led the increases, rising 14.8 percent to 65.4 percent, followed by Detroit, Michigan (+11.2 percent to 51.4 percent), and New Orleans, Louisiana (+10.7 percent to 66.7 percent). Houston, Texas, reported the largest occupancy decrease, falling 4.6 percent to 56.7 percent, followed by Norfolk-Virginia Beach, Virginia, with a 2.9-percent decrease to 49.6 percent.
New York, New York, posted the largest ADR increase, rising 5.4 percent to US$209.42. Tampa-St. Petersburg, Florida, reported the largest ADR decrease, falling 10.7 percent to US$97.98, followed by Detroit with an 8.5-percent decrease to US$75.29.
Four markets achieved a RevPAR increase of more than 10 percent: New York (+15.2 percent to US$165.56); Boston (+13.7 percent to US$89.39); New Orleans (+12.4 percent to US$81.66); and Miami-Hialeah, Florida (+11.0 percent to US$117.33). Houston dropped 10.0 percent in RevPAR to US$51.60, reporting the only double-digit decrease in that metric.