STR Reports Fourth-Quarter Gains for U.S. Hotel Industry
By Claudette Covey
January 24, 2013 10:00 PM
The U.S. hotel industry reported increases in all three key performance metrics for the fourth quarter of 2012 in year-over-year measurements, according to data from STR. The industry’s occupancy increased 2.4 percent to 56.6 percent, average daily rate rose 4 percent to $106.54, and revenue per available room was up 6.5 percent to $60.34.
“The industry finished 2012 on a good note in the fourth quarter,” said Bobby Bowers, senior vice president of operations at STR. “RevPAR gained 6.5 percent, driven primarily by a 4.2 percent ADR growth. We expect this pattern will continue in 2013, as demand growth slows somewhat and ADR traction holds. Room supply growth is gaining momentum -- up 0.7 percent in the quarter -- but we don’t expect new hotel room capacity will be a major drag on overall 2013 industry performance.”
As the U.S. hotel industry enters its fourth year of recovery, STR said it anticipates another good year in 2013 with full year RevPAR growth in the 5.5 percent to 6 percent range. Among the top 25 markets, Houston rose 6.9 percent in occupancy to 62.3 percent, reporting the largest increase in that metric, followed by New Orleans (up 6.5 percent to 65.4 percent), and Seattle (up 6.5 percent to 64.4 percent). Oahu increased 9.5 percent in ADR to $189.55, reporting the largest increase in that metric.
Eight markets experienced double-digit RevPAR increases for the quarter -- New Orleans (up 14 percent to $88.04), Los Angeles-Long Beach (up 13.8 percent to $91.40), Seattle (up 13.2 percent to $75.19), Atlanta (up 12.7 percent to $49.65), Houston (up 12.6 percent to $58.65), Oahu (up 12.2 percent to $155.47), Anaheim-Santa Ana (up 12.1 percent to $81.61), and Denver (up 11.3 percent to $60.37).
Washington, D.C.posted the largest decrease in all three key performance metrics. Its occupancy fell 1.8 percent to 60.8 percent, its ADR was down 0.8 percent to $143.03, and its RevPAR decreased 2.6 percent to $87.