STR: U.S. first quarter 2010 results

HENDERSONVILLE, Tennessee—The U.S. hotel industry reported mixed results in the three key performance metrics for first-quarter 2010 in year-over-year measurements, according to data from STR released April 22.

The industry’s occupancy was up 2.3 per cent to 51.9 per cent, average daily rate fell 4.3 per cent to US$96.27, and revenue per available room decreased 2.1 per cent to US$50.01.

“Though first quarter comps were easy, the baseline trends are encouraging nonetheless,” said Bobby Bowers, senior VP at STR. “Room supply growth is slowing, and demand (rooms sold) is growing—March was the fourth consecutive month with increased demand. Additionally, after 18 consecutive months of declines, March room revenue increased by 6.6 per cent. Clearly, we have miles to go, but these are steps in the right direction.”

Among the Chain Scale segments, the luxury segment was the only one to report increases in two of the three key performance metrics. The segment rose 10.6 per cent in occupancy to 63.1 per cent, and RevPAR was up 3.1 per cent to US$155.68.

Among the Top 25 Markets, three reported occupancy increases of more than 10 per cent: Boston, Massachusetts (+15.1 per cent to 54.6 per cent); Detroit, Michigan (+11.7 per cent to 47.6 per cent); and New York, New York (+11.6 per cent to 72.0 per cent). Houston, Texas (-9.5 per cent to 56.3 per cent), and Norfolk-Virginia Beach, Virginia (-5.7 per cent to 40.2 per cent), were the only two markets to experience occupancy decreases during the quarter.

Miami-Hialeah, Florida, was the only market to post an ADR increase, rising 4.0 per cent to US$182.70. Four markets reported ADR decreases of more than 10 per cent: Tampa-St. Petersburg, Florida, Washington, DC, Phoenix, Arizona and Chicago, Illinois .

Miami-Hialeah experienced the only double-digit RevPAR increase, jumping 14.1 per cent to US$142.41, followed by Boston with an 8.6-per cent increase to US$65.21. Houston reported the largest RevPAR decrease, dropping 16.8 per cent to US$50.90, followed by Washington, D.C. and Tampa-St. Petersburg.