U.S. Hotels Report Strong Performance Gains in Mid-December, Orlando Leading the Way

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According to the Smith Travel Research (STR), the U.S. hotel industry posted strong increases in the three key performance measurements during the week ending December 18, 2010.

In year-over-year measurements, the industry's occupancy rose 9.4 percent to 46.5 percent, average daily rate increased 4.1 percent to US$91.66, and revenue per available room went up 14.0 percent to US$42.61.

"The 4.1-percent increase in ADR was partly due to a favorable weekly comparable over Hanukkah, which began on December 12 in 2009 instead of December 2 this year," said Steve Hood, senior VP of research for STR. "There was also a big bump in group business related to the holiday this year. Overall group occupancy was up 30 percent, and ADR was up 7 percent."

Orlando, Florida, which hosted two citywide conventions during the week, reported the largest increases in each of the three performance indicators among the Top 25 Markets. The region's occupancy was up 24.6 percent to 53.6 percent, its ADR increased 18.4 percent to US$86.47, and its RevPAR jumped 47.5 percent to US$46.38.

New Orleans, Louisiana, experienced the smallest occupancy growth, increasing 1.7 percent to 45.6 percent.

Three markets, excluding Orlando, posted double-digit ADR gains: New York, New York (+12.8 percent to US$261.91); Oahu Island, Hawaii (+10.4 percent to US$159.26); and San Francisco/San Mateo, California (+10.2 percent to US$129.99). Tampa-St. Petersburg, Florida, reported a 5.6-percent drop in ADR to US$78.57-the largest decrease among the Top 25 Markets.

Oahu Island followed Orlando in RevPAR gains, posting a 37.5-percent increase to US$133.71 for the week. Only two markets posted RevPAR decreases: Tampa-St. Petersburg (-3.3 percent to US$36.86) and New Orleans (-0.4 percent US$41.04).

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