U.S. Hotel Market Reports Performance Dips in Mid-April

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According to STR, the U.S. hotel industry reported decreases in two of the three key performance metrics during the week of April 23, 2011.

In year-over-year comparisons, occupancy fell 3.7 percent to 58.3 percent, average daily rate ended the week virtually flat with a 0.8-percent increase to US$99.02, and revenue per available room finished the week down 2.9 percent to US$57.74.

"Last week's performance was strongly affected by the Easter to non-Easter comparables," said Steve Hood, senior VP at STR. "Occupancy, which has recently been in the positive 6 percent range, was negative last week (-3.7 percent). This was almost identical to the occupancy percent change last year (-3.6 percent) during Easter week. The ADR percent change, which has been in the 4 percent range, was down from prior weeks, but still remained positive (0.8 percent), compared to last year when it dipped from negative 2-percent range to -4.4 percent. Group business numbers were way down last week, but Miami-Hialeah, Florida, and Norfolk-Virginia Beach, Virginia, were both up due to holiday travelers."

Among the Top 25 Markets, Norfolk-Virginia Beach achieved the largest occupancy increase, rising 32.1 percent to 68.4 percent, followed by Orlando, Florida (+15.7 percent to 79.3 percent), and Miami-Hialeah (+11.1 percent to 80.1 percent). Three markets posted occupancy decreases of 15 percent or more: New Orleans, Louisiana (-21.3 percent to 64.3 percent); Philadelphia, Pennsylvania-New Jersey (-16.3 percent to 63.0 percent); and Washington, D.C. (-15.0 percent to 69.7 percent).

Miami-Hialeah jumped 29.3 percent in ADR to US$187.54, reporting the largest increase in that metric.  New Orleans reported the largest ADR decrease, falling 29.5 percent to US$104.00, followed by Washington, D.C., which decreased 15.9 percent to US$137.78.

Three markets experienced RevPAR increases of more 20 percent: Miami-Hialeah (+43.7 percent to US$150.17); Norfolk-Virginia Beach, Virginia (+41.9 percent to US$59.65); and New York, New York (+21.3 percent to US$227.60). New Orleans fell 44.5 percent in RevPAR to US$66.86, reporting the largest decrease in that metric, followed by Washington, D.C., with a 28.4-percent decrease to US$96.09.

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