STR Reports Growth in All Areas for U.S. Hotel Industry in 2012
By Claudette Covey
January 22, 2013 10:23 PM
The U.S. hotel industry reported growth in all three key performance metrics in 2012, according to data from STR. Overall, the U.S. hotel industry’s occupancy increased 2.5 percent to 61.4 percent, its average daily rate was up 4.2 percent to $106.10, and its revenue per available room grew 6.8 percent to 65.17.
“Fiscal cliffs, hurricanes, elections and, at times, a sense of overwhelming uncertainty did not deter positive 2012 year-end performance results,” said Brad Garner, STR's COO. Annualized room nights sold increased by 3 percent in 2012, and outpaced the 2007 previous peak levels by 60 million rooms (1.09 billion rooms in 2012 versus 1.03 billion in 2007). Room rates for hotels increased by over 4 percent, pushing industry-wide RevPAR by almost 7 percent. The industry was also unencumbered by supply growth of 0.5 percent.
“While the industry's resolve will continue to be tested with pockets of uncertainty, we anticipate continued growth in all industry performance metrics for 2013,” Garner said. Among the top 25 markets, Houston reported the largest occupancy increase, rising 9.4 percent to 65.4 percent, followed by Nashville (up 5.8 percent to 65.6 percent), and New Orleans (up 5.5 percent to 67.6 percent). Phoenix reported the only decrease, down 0.4 percent to 57.7 percent. Oahu (up 11.2 percent to $183.51), and San Francisco/San Mateo (up 10.8 percent to $171.72), achieved the largest ADR increases for the year.
Seven markets experienced RevPAR growth of 10 percent or more -- Oahu Island (up 16.7 percent to $155.37), New Orleans (up 14.6 percent to $89.81), Houston (up 13.8 percent to $61.63), San Francisco/San Mateo (up 12.8 percent to $137.99), Tampa-St. Petersburg (up 11.5 percent to $63.13), Los Angeles-Long Beach (up 11 percent to $98.11), and Chicago (up 10 percent to $83.50).
Washington, D.C., posted the only decreases for the year in ADR (down 0.7 percent to $143.84) and RevPAR (down 0.5 percent to $97.09).