U.S Hotel Sector Performs Well First Week of 2012

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According to STR, the U.S. hotel industry experienced increases in all three key performance metrics during the week ending January 7, 2012.

In year-over-year comparisons for the week, occupancy fell 1.8 percent to 41.9 percent, average daily rate increased 2.3 percent to US$95.58 and revenue per available room finished the week virtually flat with a 0.5-percent increase to US$40.05.

"Calendar day shifts for the holidays during the month of December created difficult week-over-week comparisons for the industry," said Brad Garner, chief operating officer at STR. "The Luxury hotels were the only bright spot, as affluent travelers consumed rooms at a 3.6-percent increase over last year, paying almost 6.0 percent more for luxury accommodations. We expect the industry to return to performance normalcy in the coming weeks and months, as November and December are historically tepid for the industry as a whole."

Among the Top 25 Markets, three achieved occupancy increases of more than 15 percent: Anaheim-Santa Ana, California (+18.7 percent to 57.5 percent); Chicago, Illinois (+17.6 percent to 39.6 percent); and Oahu Island, Hawaii (+16.2 percent to 85.1 percent). New Orleans, Louisiana (-17.0 percent to 54.9 percent), and Denver, Colorado (-16.4 percent to 43.7 percent), posted the largest occupancy decreases for the week.

New Orleans, which hosted the Allstate Sugar Bowl on Tuesday, 3 January 2012, reported the largest ADR increase, rising 27.5 percent to US$169.82. Oahu Island followed with a 16.7-percent increase in ADR to US$212.24. Washington, D.C., experienced the largest ADR decrease, falling 8.8 percent to US$105.35, followed by Denver with a 6.6-percent decrease to US$80.74.

Four markets achieved RevPAR increases of more than 20 percent: Oahu Island (+35.6 percent to US$180.66); Anaheim-Santa Ana (+25.9 percent to US$58.37); Chicago (+25.4 percent to US$35.39); Miami-Hialeah, Florida (+23.1 percent to US$153.66). Denver dropped 22.0 percent in RevPAR to US$35.32, posting the largest decrease in that metric, followed by Washington, D.C., with a 15.3-percent decrease to US$37.08.