STR: June reports highest RevPAR since Aug. '08

HENDERSONVILLE, Tennessee-The U.S. hotel industry finished June with the highest revenue per available room since August 2008, according to data from STR.

In June, the industry reported a 7.8-percent increase in RevPAR to US$68.90. The RevPAR in August 2008 was US$72.14.

Overall occupancy for the United States hotel industry increased 4.2 percent to 67.6 percent and average daily rate ended the month up 3.5 percent to US$101.95.

"The hotel industry's performance improvements during the first half of 2011 have been steady, and we have no reason to believe the second half of the year won't continue on the same track," said Amanda Hite, STR's president. "Demand continues to be at peak levels and supply increases are minimal. High fuel costs have tapered and the summer travel season likely will prove to be a profitable, busy time for hoteliers. As average daily rate growth begins to gain more momentum, we expect the confidence of hotel owners and operators to also rise."

Among the Chain Scale segments, the Luxury segment experienced the largest increases in all three key performance metrics. Its occupancy rose 5.7 percent to 74.3 percent, its ADR rose 6.6 percent to US$248.52, and its RevPAR increased 12.7 percent to US$184.66.

The Midscale segment was the only segment to report a decrease in any of the three key performance metrics. The segment's ADR fell 1.2 percent to US$75.22.

Among the Top 25 Markets, Dallas, Texas, reported the largest occupancy increase, rising 13.7 percent to 66.4 percent. Three other top markets posted double-digit occupancy increases: Miami-Hialeah, Florida (+11.0 percent to 70.9 percent); Tampa-St. Petersburg, Florida (+10.8 percent to 60.4 percent); and Detroit, Michigan (+10.6 percent to 66.3 percent). New York, New York, ended the month virtually flat with a 0.9-percent decrease to 85.4 percent.

None of the Top 25 Markets reported ADR or RevPAR decreases.

San Francisco/San Mateo, California, achieved the largest ADR increase, rising 15.0 percent to US$149.85, followed by Nashville, Tennessee (+10.9 percent to US$98.92), and Oahu Island, Hawaii (+10.2 percent to US$160.77).

Six markets experienced RevPAR increases of more than 15 percent: San Francisco/San Mateo (+20.5 percent to US$127.31); Nashville (+19.1 percent to US$72.89); Miami-Hialeah (+16.9 percent to US$8815); Dallas (+16.7 percent to US$54.94); Minneapolis-St. Paul, Minnesota-Wisconsin (+15.2 percent to US$76.77); and Seattle, Washington (+15.1 percent to US$97.15).

Year-to-date June 2011, the industry's occupancy rose 5.0 percent to 59.2 percent, ADR increased 3.3 percent to US$100.54, and RevPAR was up 8.5 percent to US$59.49.

View U.S. hotel review for week ending 9 January.

Media Contacts:

Jeff Higley 
VP, Digital Media & Communication
jeff@str.com
+1 (615) 824 8664 ext. 3318

Rachael Spann Urie
Director, Public Relations
rurie@str.com
+1 (615) 824 8664 ext. 3305