STR Reports U.S. Hotel Performance for August

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(News Source: Smith Travel Research)

(HENDERSONVILLE, TN) -- The U.S. hotel industry posted declines in all three key performance measurements during August, according to data from STR.

In year-over-year measurements, the industry's occupancy fell 9.9 percent to end the month at 60.7 percent. Average daily rate dropped 10.1 percent to finish the month at US$96.58. Revenue per available room for the month decreased 19.0 percent to finish at US$58.65.

"The results for August, while not a surprise, were unfortunately a continuation of what the industry has been reporting over the past several months," said Mark Lomanno, president of STR. "Demand, while showing signs of stabilization, is still well below year earlier numbers. We are not likely to see improvement in this key indicator for another month or two, where favorable comps to last year will begin to be realized. In addition, the continued erosion in room rates will increasingly put a strain on profitability. The last quarter of 2009 will be closely scrutinized as we look for any swings that might reflect a turnaround."

Among the Top 25 Markets, Washington, D.C., reported the smallest decreases in all three key metrics: Occupancy fell 0.6 percent to 65.5 percent, ADR dropped 4.7 percent to US$121.48, and RevPAR fell 5.2 percent to US$79.55.

Four markets besides Washington, D.C., posted occupancy decreases of less than 5 percent: Boston, Massachusetts (-4.2 percent to 74.1 percent); San Francisco/San Mateo, California (-3.3 percent to 84.7 percent); Oahu Island, Hawaii (-2.6 percent to 78.3 percent); and Tampa-St. Petersburg, Florida (-1.1 percent to 48.2 percent). Detroit, Michigan, experienced the largest decrease in occupancy, falling 17.9 percent to 53.8 percent, followed by Houston, Texas, with a 16.6-percent decrease to 51.7 percent.

Denver, Colorado, reported the largest ADR decrease, falling 30.2 percent to US$89.61. New York, New York, also experienced a large drop in ADR, which fell 27.1 percent to US$185.56, followed by San Francisco/San Mateo (-17.4 percent to US$127.87); San Diego, California (-16.2 percent to US$130.58); and Minneapolis-St. Paul, Minnesota-Wisconsin (-16.0 percent to US$92.38).

Denver also experienced the largest RevPAR decrease, down 38.3 percent to US$60.51. Three additional markets reported RevPAR decreases of more than 25 percent: New York (-31.8 percent to US$154.95); Detroit (-28.3 percent to US$41.65); and Chicago (-26.1 percent to US$68.84).

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