January 23, 2019
U.S. Had Great 2018, But Can It Keep Going?
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The U.S. hotel industry had a great year: According to STR, the absolute values in three key performance metrics were each the highest STR has ever benchmarked for the U.S. hotel industry, which also set records for supply (more than 1.9 billion room nights available) and demand (roughly 1.3 billion room nights sold), year over year. Based on percentage growth for the year, demand (+2.5%) outpaced supply (+2.0%).
- Occupancy: +0.5% to 66.2%
- ADR: +2.4% to US$129.83
- RevPAR: +2.9% to US$85.96
"U.S. hotels had a good, not great year," said Amanda Hite, STR's president and CEO. "Operating most of the year in a pretty favorable macroeconomic environment, the industry reached its highest-ever annual occupancy and grew RevPAR for the ninth year in a row - albeit at a rate lower than the long-term average. All classes recorded RevPAR gains, but the upper upscale and upscale segments showed occupancy declines, and we expect this trend to continue throughout 2019."
Here are the top markets:
- Super Bowl LII host Minneapolis/St. Paul, Minnesota-Wisconsin, reported the yearÕs largest spike in RevPAR (+6.9% to US$82.96).
- Miami/Hialeah, Florida, posted the largest lift in ADR (+6.1% to US$199.35).
- Philadelphia, Pennsylvania-New Jersey, experienced the highest rise in occupancy (+3.8% to 71.1%) and the third-largest increase in RevPAR (+6.0% to US$94.60).
U.S. results for December: Also from STR, the U.S. hotel industry reported positive results during December 2018: Year over year, occupancy rose 0.1% to 54.1%; ADR was up 1.8% to US$124.28; and RevPAR rose 1.9% to US$67.20.
Copyright 2019 Marketing & Technology Group. All rights reserved. From http://www.hotelsmag.com. By HOTEL Editors.
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