STR Reports U.S. Hotel Performance Dips in Early January

---

(HENDERSONVILLE, TN) -- According to data from Smith Travel Research, the U.S. hotel industry reported decreases in all three key measurements during the week of January 3-9, 2010.

In year-over-year measurements, the industry's occupancy decreased 3.9 percent to end the week at 40.5 percent. Average daily rate dropped 6.8 percent to finish the week at US$91.85. RevPAR for the week fell 10.4 percent to finish at US$37.21. The market's performance was positively affected by the Rose Bowl college football game, which was held on January 7, 2010.

Among the Chain Scale segments, the Luxury segment was the only segment to report an increase in any of the three key metrics. The segment's occupancy was up 5.8 percent to 49.9 percent. Two segments ended the week virtually flat in occupancy: the Upper Upscale segment (-0.8 percent to 47.2 percent) and the Upscale segment (-0.8 percent to 45.0 percent).

Among the Top 25 Markets, Los Angeles-Long Beach, California, experienced the largest increase in all three key metrics. The market's occupancy rose 16.9 percent to 61.8 percent. ADR was up 4.3 percent to US$127.57, and RevPAR jumped 21.8 percent to US$78.89.

Houston, Texas, posted the largest occupancy decrease, falling 23.7 percent to 41.3 percent due to the lingering effects of Hurricane Ike, noted Bobby Bowers, senior vice president at STR. Nashville, Tennessee (-16.8 percent to 36.8 percent), and San Francisco/San Mateo, California (-15.1 percent to 46.0 percent) also reported large occupancy decreases.

Three markets experienced ADR decreases of more than 15 percent: San Francisco/San Mateo (-17.3 percent to US$106.77); Detroit, Michigan (-16.5 percent to US$73.96); and Houston (-16.1 percent to US$79.17).

Atlanta, Georgia, ended the week virtually flat in RevPAR, which was up 0.3 percent to US$46.82. Miami-Hialeah, Florida, also reported a 0.3-percent increase in RevPAR to US$129.80. Four markets reported RevPAR decreases of more than 20 percent: Houston (-36.0 percent to US$32.67); San Francisco/San Mateo (-29.8 percent to US$49.07); Washington, D.C. (-24.8 percent to US$47.39); and Nashville (-23.4 percent to US$29.52).

---