The U.S. hotel industry reported positive results in the three key performance metrics during January 2020, according to data from STR.
In a year-over-year comparison with January 2019, the industry posted the following:
- Occupancy: +0.8% to 55.1%
- Average daily rate (ADR): +1.4% to US$126.06
- Revenue per available room (RevPAR): +2.2% to US$69.47
“The industry opened 2020 with records across the key performance metrics and fairly substantial year-over-year growth when considering recent trends,” said Jan Freitag, STR’s senior VP of lodging insights. “The obvious concern is whether we will see coronavirus effects on U.S. performance that is already forecasted to be lackluster for 2020. To this point into February weekly data, there has not been a noticeable impact, but that is expected to change at some point amid a significant drop in Chinese arrivals, especially in gateway cities. As of right now, STR’s 2020 RevPAR forecast for the U.S. remains at 0%.”
Among the Top 25 Markets, Super Bowl LIV host, Miami/Hialeah, Florida, posted the largest jump in RevPAR (+18.6% to US$215.89), driven by the only double-digit lift in ADR (+14.5% to US$266.32).
St. Louis, Missouri-Illinois, experienced the highest rise in occupancy (+7.6% to 49.6%) and the second-largest increase in RevPAR (+14.0% to US$49.69).
Oahu Island, Hawaii, recorded the only other double-digit gain in RevPAR (+12.9% to US$223.33).
Overall, 19 of the Top 25 Markets reported a RevPAR increase.
Detroit, Michigan, registered the largest drop in RevPAR (-13.7% to US$50.60), due primarily to the only double-digit decrease in ADR (-12.2% to US$96.28).
Due to comparison with its Super Bowl host time last year, Atlanta, Georgia, saw the largest decline in occupancy (-4.8% to 62.4%). RevPAR in the market decreased 12.3% to $71.97.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.