US hotels set Q1 performance

Category：Industry Key Words：US hotels Time：2018-04-20 09:19

The U.S. hotel industry reported record-breaking performance during the first quarter of 2018, according to data from STR.

Compared with Q1 2017:

• Occupancy: +0.9% to 61.6%
• Average daily rate (ADR): +2.5% to US$127.37
• Revenue per available room (RevPAR): +3.5% to US$78.46

“The absolute levels for each of the three key performance metrics were the highest STR has ever benchmarked for a Q1,” said Bobby Bowers, STR’s senior VP of operations. “Supply (more than 460 million room nights available) and demand (more than 285 million room nights sold) also reached record levels for a Q1, but demand grew at a much higher rate (+3.0% vs. +2.0%).”

Among the Top 25 Markets, Super Bowl LII host, Minneapolis/St. Paul, Minnesota-Wisconsin, saw the quarter’s largest increases in ADR (+18.6% to US$128.27) and RevPAR (+23.8% to US$77.88).

Other double-digit RevPAR increases were reported in Miami/Hialeah, Florida (+16.6% to US$216.42); Philadelphia, Pennsylvania-New Jersey (+13.5% to US$79.80); and Orlando, Florida (+10.7% to US$120.17).

Philadelphia’s RevPAR growth was primarily driven by the quarter’s highest increase in occupancy (+9.1% to 64.9%).

Miami posted the highest absolute values across the three key performance metrics: occupancy (85.3%), ADR (US$253.66) and RevPAR (US$216.42).

“Healthy ADR growth pushed RevPAR growth slightly ahead of first-quarter expectations,” Bowers said. “As we’ve noted, overall numbers were lifted by the residual performance impact in hurricane-affected markets in Texas and Florida, but at the same time, the industry overcame a few tough calendar comparisons like the (presidential) inauguration and Women’s March in D.C. last year as well as the Easter shift from April.”

Affected by the tough-to-match comparison from January 2017, Washington, D.C.-Maryland-Virginia, reported the quarter’s steepest decline in RevPAR (-11.0% to US$96.05), due primarily to the largest drop in ADR (-9.4% to US$150.27).

Seattle, Washington, experienced the largest decline in occupancy (-3.8% to 68.7%).