STR president: Good riddance to 2009

HENDERSONVILLE, TN—The U.S. hotel industry posted a double-digit drop in revenue per available room during 2009. The metric fell 16.7 per cent to US$53.71, the largest year-end decrease of any of the three key measurements, according to data from STR.

The industry’s occupancy fell 8.7 per cent to 55.1 per cent for the year and average daily rate dropped 8.8 per cent to US$97.51.

“Good riddance to 2009, a year which we believe will go down as the worst in the modern hotel industry,” said Mark Lomanno, president at STR. “The combination of a distressed economy in conjunction with panic pricing drove RevPARs down to levels that were virtually incomprehensible just a year and a half ago. I look for a significant improvement in the key hotel performance indicators in 2010.”

None of the Top 25 Markets reported increases in any of the three key metrics for year-end 2009. Three markets posted occupancy decreases of less than 5 per cent: Norfolk-Virginia Beach, Virginia (-3.3 per cent to 53.2 per cent); Washington, D.C. (-3.2 per cent to 64.9 per cent); and Oahu Island, Hawaii (-2.3 per cent to 73.3 per cent). Houston, Texas, ended the year with the largest occupancy decrease, falling 17.0 per cent to 55.8 per cent because of the lingering effects of Hurricane Ike.

New Orleans, Louisiana was the only market to post a year-end ADR decrease of less than five per cent, falling 4.0 per cent to US$113.52. New York, New York, reported the largest ADR decrease, falling 21.8 per cent to US$215.14, followed by Phoenix, Arizona which experienced a drop of 15.4 per cent to US$105.72.

Two markets posted single-digit RevPAR decreases: Norfolk-Virginia Beach (-8.5 per cent to US$44.47) and Washington, D.C. (-8.5 per cent to US$94.04). New York ended the year with the largest RevPAR decrease, down 26.3 per cent to US$166.11, followed by Phoenix with a 25.3 per cent decrease to US$55.36.

Canadian Lodging Review - November 2009

November 2009 select Canadian markets (Source: HVS International)