


The U.S. hotel industry reported mixed results in the three key performance metrics for the first half of 2010 in year-over-year measurements, according to data from STR. The industry’s occupancy was up 4.4 percent to 56.4 percent, average daily rate fell 2.0 percent to $97.18, and revenue per available room increased 2.3 percent to $54.80. In second-quarter 2010, occupancy increased 6.2 percent to 60.7 percent, ADR ended the quarter flat at $97.87, and revPAR increased 6.2 percent to $59.44.
“First-half and second-quarter U.S. hotel industry performance demonstrated marked improvement from 2009—particularly on the demand (rooms sold) front,” said Bobby Bowers, senior vice president at STR. “Second-quarter room demand increased 8.7 percent -- the industry’s largest quarterly demand increase since STR began tracking performance in 1987. ADR growth is slowly improving, primarily at the upper-end, and we expect continued gradual improvement through the second half. We’re forecasting full-year 2010 revPAR growth of just over 5 percent, driven almost exclusively by occupancy gains.”
In the first half of 2010, 23 of the Top 25 Markets experienced occupancy increases. Boston led the increases, rising 14.8 percent to 65.4 percent, followed by Detroit (up 11.2 percent to 51.4 percent) and New Orleans (up 10.7 percent to 66.7 percent). Houston reported the largest occupancy decrease, falling 4.6 percent to 56.7 percent, followed by Norfolk-Virginia Beach, Va., with a 2.9 percent decrease to 49.6 percent.
New York City posted the largest ADR increase, rising 5.4 percent to $209.42. Tampa-St. Petersburg, Florida, reported the largest ADR decrease, falling 10.7 percent to $97.98, followed by Detroit with an 8.5 percent decrease to $75.29.
Four markets achieved a revPAR increase of more than 10 percent: New York (up 15.2 percent to $165.56); Boston (up 13.7 percent to $89.39); New Orleans (up 12.4 percent to $81.66); and Miami-Hialeah, Florida (up 11.0 percent to $117.33). Houston dropped 10 percent in revPAR to $51.60, reporting the only double-digit decrease in that metric. For more information, visit www.str.com.
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