For the first time in over one year, the U.S. hotel industry reported increases in two of the three key performance metrics for the week 27 December 2009 to 2 January 2010, according to Smith Travel Research (STR). The positive results were in occupancy rates and revenue per available room. Since 20 December 2008, key performance indicators have trended down.
In year-over-year measurements, the industry’s occupancy increased 5.9 percent to end the week at 45.5 percent. Average daily rate dropped 4.0 percent to finish the week at US$99.79. RevPAR for the week rose 1.6 percent to finish at US$45.37.
Among the Top 25 Markets, St. Louis, Missouri-Illinois, experienced the largest occupancy increase, jumping 35.4 percent to 42.2 percent. Three other markets reported occupancy increases of more than 20 percent: Philadelphia, Pennsylvania-New Jersey (+26.8 percent to 42.6 percent); Boston, Massachusetts (+23.6 percent to 40.9 percent); and Atlanta, Georgia (+21.5 percent to 43.3 percent). Houston, Texas (-6.3 percent to 34.4 percent), and San Francisco/San Mateo, California (-2.4 percent to 61.6 percent), were the only markets to report occupancy decreases for the week.
Atlanta was the only market to post an ADR increase, up 3.9 percent to US$73.37. Three markets experienced double-digit ADR decreases: Houston (-13.2 percent to US$69.88); Phoenix, Arizona (-12.8 percent to US$91.04); and Denver, Colorado (-10.0 percent to US$72.20).
St. Louis led the RevPAR increases, jumping 33.5 percent to US$28.72, followed by Atlanta (+26.3 percent to US$31.74), Philadelphia (+21.2 percent to US$40.31), and Boston (+20.9 percent to US$44.39). Two markets posted RevPAR decreases of more than 10 percent: Houston (-18.7 percent to US$24.07) and San Francisco/San Mateo (-12.0 percent to US$68.24).
