STR Reports August Gains in Occupancy, Rate for U.S. Hotel Industry
By Claudette Covey
September 23, 2012 10:18 PM
For the month of August, the U.S. hotel industry’s occupancy rose 2.8 percent to 67.8 percent, its average daily rate was up 4.3 percent to $107, and its revenue per available room increased 7.2 percent to $72.55, according to STR, a company that tracks supply and demand for the hotel industry.
“The hotel industry snapped back in August after a tepid July. Driven primarily by an ADR increase of 4.3 percent, revPAR rose 7.2 percent for the month, while occupancy grew 2.8 percent,” said Bobby Bowers, senior vice president of operations at STR. “Because of an extra weekend day in August, demand showed a healthy increase, rising 3.4 percent, and supply growth inched up 0.6 percent. Not to mention about eight of the top 25 markets ran occupancies of 80 percent or higher. We are now moving into the important fall meetings and conference season, and we’re hoping to see some strength in group numbers down the home stretch.”
Among the top 25 markets, Houston experienced the largest occupancy increase, rising 13.8 percent to 65.2 percent, followed by Tampa-St. Petersburg, Fla., with a 9.8 percent increase to 62.9 percent. New Orleans (down 1.6 percent to 54.2 percent) and Miami-Hialeah, Fla. (down 1.2 percent to 72.3 percent), ended the month with the largest occupancy decreases.
Tampa-St. Petersburg, which experienced high increases after hosting the Republican National Convention during August, grew 33.4 percent in ADR to $115.26, posting the largest increase in that metric, followed by Oahu Island, Hawaii (up 16.5 percent to $196.96), and San Francisco/San Mateo (up 12.8 percent to $180.19).
Three markets achieved RevPAR increases of more than 15 percent -- Tampa-St. Petersburg (up 46.4 percent to $72.46), Oahu Island (up 20.9 percent to $177.33), and Houston (up 18.8 percent to $58.38). None of the top markets experienced RevPAR decreases for the month.