Monday, December 27, 2010
Thursday, November 18, 2010
Monday, October 25, 2010
STR reports third-quarter 2010 results
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25 October 2010 8:22 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported increases in all three key performance metrics for third-quarter 2010 in year-over-year measurements, according to data from STR.
The industry’s occupancy was up 6.7 percent to 63.9 percent, average daily rate rose 1.6 percent to US$99.07, and revenue per available room increased 8.4 percent to US$63.34.
Year-to-date 2010, occupancy increased 5.2 percent to 58.9 percent, ADR fell 0.7 percent to US$97.89, and RevPAR was up 4.5 percent to US$57.70.
“The U.S. hotel industry continued its recovery in the third quarter,” said Bobby Bowers, senior VP at STR. “Quarterly occupancy growth was the highest STR has ever recorded, and ADR growth was positive for the first time since third-quarter 2008—a seven-quarter stretch. The combined occupancy and ADR gains pushed RevPAR up 8.4 percent—the best quarterly growth the industry has recorded since second-quarter 2006. We anticipate continued but somewhat slower occupancy growth in the final quarter, while ADR should continue its positive momentum.”
Among the Top 25 Markets, New Orleans, Louisiana, achieved the largest occupancy increase, rising 20.5 percent to 61.8 percent, followed by Detroit, Michigan, with an 18.6-percent increase to 61.2 percent. None of the top markets reported occupancy decreases for the third quarter.
New York, New York, was the only top market to report a double-digit ADR increase, rising 11.6 percent to US$230.71. Three other markets reported ADR increases of more than 5 percent: San Francisco/San Mateo, California (+7.2 percent to US$142.82), Boston, Massachusetts (+5.6 percent to US$144.86) and New Orleans (+5.2 percent to US$98.61). Nashville, Tennessee, posted the largest ADR decrease, falling 4.1 percent to US$82.86, followed by Detroit (-2.3 percent to US$74.79) and Houston, Texas (-2.2 percent to US$85.14).
Two markets experienced RevPAR increases of more than 15 percent: New Orleans (+26.8 percent to US$60.97) and Detroit (+15.9 percent to US$45.80). Phoenix, Arizona, was the only market to report a RevPAR decrease, falling 0.8 percent to US$35.07.
About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics and HotelNewsNow.com. For more information, please visit www.str.com.
Media Contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann Urie
Communications Coordinator
rurie@str.com
+1 (615) 824-8664 ext. 3305
25 October 2010 8:22 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported increases in all three key performance metrics for third-quarter 2010 in year-over-year measurements, according to data from STR.
The industry’s occupancy was up 6.7 percent to 63.9 percent, average daily rate rose 1.6 percent to US$99.07, and revenue per available room increased 8.4 percent to US$63.34.
Year-to-date 2010, occupancy increased 5.2 percent to 58.9 percent, ADR fell 0.7 percent to US$97.89, and RevPAR was up 4.5 percent to US$57.70.
“The U.S. hotel industry continued its recovery in the third quarter,” said Bobby Bowers, senior VP at STR. “Quarterly occupancy growth was the highest STR has ever recorded, and ADR growth was positive for the first time since third-quarter 2008—a seven-quarter stretch. The combined occupancy and ADR gains pushed RevPAR up 8.4 percent—the best quarterly growth the industry has recorded since second-quarter 2006. We anticipate continued but somewhat slower occupancy growth in the final quarter, while ADR should continue its positive momentum.”
Among the Top 25 Markets, New Orleans, Louisiana, achieved the largest occupancy increase, rising 20.5 percent to 61.8 percent, followed by Detroit, Michigan, with an 18.6-percent increase to 61.2 percent. None of the top markets reported occupancy decreases for the third quarter.
New York, New York, was the only top market to report a double-digit ADR increase, rising 11.6 percent to US$230.71. Three other markets reported ADR increases of more than 5 percent: San Francisco/San Mateo, California (+7.2 percent to US$142.82), Boston, Massachusetts (+5.6 percent to US$144.86) and New Orleans (+5.2 percent to US$98.61). Nashville, Tennessee, posted the largest ADR decrease, falling 4.1 percent to US$82.86, followed by Detroit (-2.3 percent to US$74.79) and Houston, Texas (-2.2 percent to US$85.14).
Two markets experienced RevPAR increases of more than 15 percent: New Orleans (+26.8 percent to US$60.97) and Detroit (+15.9 percent to US$45.80). Phoenix, Arizona, was the only market to report a RevPAR decrease, falling 0.8 percent to US$35.07.
About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics and HotelNewsNow.com. For more information, please visit www.str.com.
Media Contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann Urie
Communications Coordinator
rurie@str.com
+1 (615) 824-8664 ext. 3305
Thursday, August 26, 2010
Report: Houston hotels worse off in 2010
Thursday, August 26, 2010, 3:13pm CDT
Houston Business Journal
Houston hotels are expected to make less this year despite promising occupancy increases, according to Colliers PKF Hospitality Research.
The hotel market forecaster expects hotels in the Houston region to experience a 2.6 percent average loss in revenue per available room (RevPAR), a key indicator used to measure hospitality performance. The shift counters national expectations that most major markets will improve RevPAR about 4.6 percent this year.
“On a national level we are seeing strong growth in occupancy as business and leisure travelers return to the road,” PKF President Mark Woodworth said in a statement. “However, our analysis confirms that the sharp rise in demand during the first half of 2010 is partially attributable to the low level of room rates.”
Overall, Houston hotels are expected to decrease rates by 3.1 percent this year, while occupancy should rise by about 0.5 percent.
“In Houston, we are seeing a pattern similar to the national trend. Unfortunately, the projected percent decline in (average daily rate) is significant enough to offset the expected gain in occupancy," said Randy McCaslin in Colliers PKF Houston office.
Read more: Report: Houston hotels worse off in 2010 - Houston Business Journal
Houston Business Journal
Houston hotels are expected to make less this year despite promising occupancy increases, according to Colliers PKF Hospitality Research.
The hotel market forecaster expects hotels in the Houston region to experience a 2.6 percent average loss in revenue per available room (RevPAR), a key indicator used to measure hospitality performance. The shift counters national expectations that most major markets will improve RevPAR about 4.6 percent this year.
“On a national level we are seeing strong growth in occupancy as business and leisure travelers return to the road,” PKF President Mark Woodworth said in a statement. “However, our analysis confirms that the sharp rise in demand during the first half of 2010 is partially attributable to the low level of room rates.”
Overall, Houston hotels are expected to decrease rates by 3.1 percent this year, while occupancy should rise by about 0.5 percent.
“In Houston, we are seeing a pattern similar to the national trend. Unfortunately, the projected percent decline in (average daily rate) is significant enough to offset the expected gain in occupancy," said Randy McCaslin in Colliers PKF Houston office.
Read more: Report: Houston hotels worse off in 2010 - Houston Business Journal
Friday, June 4, 2010
PwC's Lodging Industry Forecast shows recovery in sight | HotelWorld Network
PwC's Lodging Industry Forecast shows recovery in sight HotelWorld Network
PwC's Lodging Industry Forecast shows recovery in sight
May 28, 2010
NEW YORK-- PricewaterhouseCoopers’ updated US lodging forecast expects continued recovery of demand, with the ability to increase room rates returning in 2011, after two consecutive years of decline. The initial months of 2010 suggest that a sustainable recovery of lodging demand has begun. As businesses and consumers gain further confidence in the strength of economic recovery, discretionary spending is expected to continue to increase, contributing to progressive increases in lodging demand through the remainder of 2010, though the pace of recovery is expected to moderate. With lodging supply growth expected to lag demand growth for the first time since 2006, PricewaterhouseCoopers expects hotel occupancy levels in 2010 to increase. Average daily rates (ADR) are not expected to increase until early next year, resulting in a moderate occupancy-driven increase in revenue per available room (RevPAR) in 2010, with a more substantial, rate-driven recovery in RevPAR expected in 2011.
PricewaterhouseCoopers' quarterly lodging forecast is based on an updated macroeconomic forecast from Macroeconomic Advisers, LLC that expects real gross domestic product (GDP) growth to be above its long term average, but below the typical growth expected after a deep recession. Macroeconomic Advisers expects GDP to increase 3.5 percent in 2010, followed by a 3.9 percent increase in 2011.
The current slowdown in hotel construction activity is a key element in the foundation for recovery in operating performance of existing hotels. The pace of new construction starts fell from 134,000 rooms in 2008, to 47,000 in 2009, and most recently to a pace equivalent to approximately 29,000 rooms (annualized) through the first quarter of 2010. This sets the context for progressively slower supply growth of 1.9 percent and 0.4 percent in 2010 and 2011, respectively. This constrained supply growth, combined with gradual recovery in lodging demand, is expected to result in increases in occupancy levels to 56.6 percent and 58.2 percent in 2010 and 2011, respectively. The industry has experienced a more pronounced rebound in transient demand. However, until group bookings pick up, realizing significant increases in room rates in many hotels and markets will be challenging. As a result, PricewaterhouseCoopers forecasts ADR levels to decrease a further 1.7 percent in 2010, before growth resumes with a 3.5 percent increase in 2011.
Sources: Smith Travel Research and PricewaterhouseCoopers
"Though this remains a challenging year, the hotel sector's recent increases in lodging demand are brisk, and with improving economic conditions, some operators are ready to re-focus on increasing room rates," says Scott D. Berman, principal and US Industry Leader, Hospitality & Leisure, for PricewaterhouseCoopers.
PwC's Lodging Industry Forecast shows recovery in sight
May 28, 2010
NEW YORK-- PricewaterhouseCoopers’ updated US lodging forecast expects continued recovery of demand, with the ability to increase room rates returning in 2011, after two consecutive years of decline. The initial months of 2010 suggest that a sustainable recovery of lodging demand has begun. As businesses and consumers gain further confidence in the strength of economic recovery, discretionary spending is expected to continue to increase, contributing to progressive increases in lodging demand through the remainder of 2010, though the pace of recovery is expected to moderate. With lodging supply growth expected to lag demand growth for the first time since 2006, PricewaterhouseCoopers expects hotel occupancy levels in 2010 to increase. Average daily rates (ADR) are not expected to increase until early next year, resulting in a moderate occupancy-driven increase in revenue per available room (RevPAR) in 2010, with a more substantial, rate-driven recovery in RevPAR expected in 2011.
PricewaterhouseCoopers' quarterly lodging forecast is based on an updated macroeconomic forecast from Macroeconomic Advisers, LLC that expects real gross domestic product (GDP) growth to be above its long term average, but below the typical growth expected after a deep recession. Macroeconomic Advisers expects GDP to increase 3.5 percent in 2010, followed by a 3.9 percent increase in 2011.
The current slowdown in hotel construction activity is a key element in the foundation for recovery in operating performance of existing hotels. The pace of new construction starts fell from 134,000 rooms in 2008, to 47,000 in 2009, and most recently to a pace equivalent to approximately 29,000 rooms (annualized) through the first quarter of 2010. This sets the context for progressively slower supply growth of 1.9 percent and 0.4 percent in 2010 and 2011, respectively. This constrained supply growth, combined with gradual recovery in lodging demand, is expected to result in increases in occupancy levels to 56.6 percent and 58.2 percent in 2010 and 2011, respectively. The industry has experienced a more pronounced rebound in transient demand. However, until group bookings pick up, realizing significant increases in room rates in many hotels and markets will be challenging. As a result, PricewaterhouseCoopers forecasts ADR levels to decrease a further 1.7 percent in 2010, before growth resumes with a 3.5 percent increase in 2011.
Sources: Smith Travel Research and PricewaterhouseCoopers
"Though this remains a challenging year, the hotel sector's recent increases in lodging demand are brisk, and with improving economic conditions, some operators are ready to re-focus on increasing room rates," says Scott D. Berman, principal and US Industry Leader, Hospitality & Leisure, for PricewaterhouseCoopers.
Moody Gets $80M for Hotel Portfolio
Moody Gets $80M for Hotel Portfolio
Houston-based Moody National Cos. has banked $80 million from Inland American Lodging Group Inc., turning over a 598-key, Marriott-branded portfolio in three states.
The hotels will continue to be managed by Concord Hospitality Enterprises Co. of Raleigh, N.C. The buyer extended Concord's management contracts through 2020.
The portfolio consists of the 182-room Courtyard Pittsburgh Downtown and 94-key Courtyard Pittsburgh West Homestead in Pennsylvania; 103-room Courtyard West Palm Beach Airport in Florida; and 219-key Marriott West Des Moines in Iowa.
"This is a strong portfolio of Marriott-branded hotels that sustained moderate rate and occupancy declines compared to the national average, throughout the economic downturn," said Marcel Verbaas, president and CEO of Orlando, Fla.-based Inland American Lodging Advisors Inc. "We believe they are well-positioned for growth as the economy recovers and business and leisure travel return to more normalized levels. Targeted capital expenditures will further enhance these hotels during Inland American's first few years of ownership."
With the acquisition, Inland American Real Estate Trust, headquartered in Oak Brook, Ill., has 54 Marriott-branded hotels with 15,584 rooms in the U.S.
http://houston.citybizlist.com/yourcitybiznews/detail.aspx?id=80350
Houston-based Moody National Cos. has banked $80 million from Inland American Lodging Group Inc., turning over a 598-key, Marriott-branded portfolio in three states.
The hotels will continue to be managed by Concord Hospitality Enterprises Co. of Raleigh, N.C. The buyer extended Concord's management contracts through 2020.
The portfolio consists of the 182-room Courtyard Pittsburgh Downtown and 94-key Courtyard Pittsburgh West Homestead in Pennsylvania; 103-room Courtyard West Palm Beach Airport in Florida; and 219-key Marriott West Des Moines in Iowa.
"This is a strong portfolio of Marriott-branded hotels that sustained moderate rate and occupancy declines compared to the national average, throughout the economic downturn," said Marcel Verbaas, president and CEO of Orlando, Fla.-based Inland American Lodging Advisors Inc. "We believe they are well-positioned for growth as the economy recovers and business and leisure travel return to more normalized levels. Targeted capital expenditures will further enhance these hotels during Inland American's first few years of ownership."
With the acquisition, Inland American Real Estate Trust, headquartered in Oak Brook, Ill., has 54 Marriott-branded hotels with 15,584 rooms in the U.S.
http://houston.citybizlist.com/yourcitybiznews/detail.aspx?id=80350
Monday, May 3, 2010
PKF Hospitality Reports Steep Profit Decline For Hotels In 2009
Posted 05/03/2010 - 7:16:11 AM
ATLANTA—The average U.S. hotel experienced a 35.4% decline in profits in 2009, according to survey results in the recently released "Trends in the Hotel Industry" report issued by PKF Hospitality Research.
The 2009 decline represents the greatest annual fall-off in the bottom line since PKF-HR began tracking the industry in the 1930's. Some 95% of the properties surveyed experienced a decline in rooms revenue and total hotel revenue from 2008 to 2009. On average, the properties in the Trends report experienced a 7.5% decline in occupancy and a 12.1% decline in average daily rate.
Resort, convention and full-service hotels endured the greatest declines in profits, dropping 37.8%, 37.5% and 37.4%, respectively.
ATLANTA—The average U.S. hotel experienced a 35.4% decline in profits in 2009, according to survey results in the recently released "Trends in the Hotel Industry" report issued by PKF Hospitality Research.
The 2009 decline represents the greatest annual fall-off in the bottom line since PKF-HR began tracking the industry in the 1930's. Some 95% of the properties surveyed experienced a decline in rooms revenue and total hotel revenue from 2008 to 2009. On average, the properties in the Trends report experienced a 7.5% decline in occupancy and a 12.1% decline in average daily rate.
Resort, convention and full-service hotels endured the greatest declines in profits, dropping 37.8%, 37.5% and 37.4%, respectively.
Wednesday, April 21, 2010
STR reports first-quarter results for 2010
Hotel News Now Hotels News - Article
21 April 2010 8:07 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported mixed results in the three key performance metrics for first-quarter 2010 in year-over-year measurements, according to data from STR.
The industry’s occupancy was up 2.3 percent to 51.9 percent, average daily rate fell 4.3 percent to US$96.27, and revenue per available room decreased 2.1 percent to US$50.01.
“Though first quarter comps were easy, the baseline trends are encouraging nonetheless,” said Bobby Bowers, senior vp at STR. “Room supply growth is slowing, and demand (rooms sold) is growing –March was the fourth consecutive month with increased demand. Additionally, after 18 consecutive months of declines, March room revenue increased by 6.6 percent. Clearly, we have miles to go, but these are steps in the right direction.”
Among the Chain Scale segments, the Luxury segment was the only one to report increases in two of the three key performance metrics. The segment rose 10.6 percent in occupancy to 63.1 percent, and RevPAR was up 3.1 percent to US$155.68.
Among the Top 25 Markets, three reported occupancy increases of more than 10 percent: Boston, Massachusetts (+15.1 percent to 54.6 percent); Detroit, Michigan (+11.7 percent to 47.6 percent); and New York, New York (+11.6 percent to 72.0 percent). Houston, Texas (-9.5 percent to 56.3 percent), and Norfolk-Virginia Beach, Virginia (-5.7 percent to 40.2 percent), were the only two markets to experience occupancy decreases during the quarter.
Miami-Hialeah, Florida, was the only market to post an ADR increase, rising 4.0 percent to US$182.70. Four markets reported ADR decreases of more than 10 percent: Tampa-St. Petersburg, Florida (-15.1 percent to US$101.59); Washington, D.C. (-12.6 percent to US$141.58); Phoenix, Arizona (-10.7 percent to US$120.49); and Chicago, Illinois (-10.3 percent to US$93.04).
Miami-Hialeah experienced the only double-digit RevPAR increase, jumping 14.1 percent to US$142.41, followed by Boston with an 8.6-percent increase to US$65.21. Houston reported the largest RevPAR decrease, dropping 16.8 percent to US$50.90, followed by Washington, D.C. (-12.6 percent to US$83.53) and Tampa-St. Petersburg (-12.5 percent to US$63.98).
About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.str.com.
21 April 2010 8:07 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported mixed results in the three key performance metrics for first-quarter 2010 in year-over-year measurements, according to data from STR.
The industry’s occupancy was up 2.3 percent to 51.9 percent, average daily rate fell 4.3 percent to US$96.27, and revenue per available room decreased 2.1 percent to US$50.01.
“Though first quarter comps were easy, the baseline trends are encouraging nonetheless,” said Bobby Bowers, senior vp at STR. “Room supply growth is slowing, and demand (rooms sold) is growing –March was the fourth consecutive month with increased demand. Additionally, after 18 consecutive months of declines, March room revenue increased by 6.6 percent. Clearly, we have miles to go, but these are steps in the right direction.”
Among the Chain Scale segments, the Luxury segment was the only one to report increases in two of the three key performance metrics. The segment rose 10.6 percent in occupancy to 63.1 percent, and RevPAR was up 3.1 percent to US$155.68.
Among the Top 25 Markets, three reported occupancy increases of more than 10 percent: Boston, Massachusetts (+15.1 percent to 54.6 percent); Detroit, Michigan (+11.7 percent to 47.6 percent); and New York, New York (+11.6 percent to 72.0 percent). Houston, Texas (-9.5 percent to 56.3 percent), and Norfolk-Virginia Beach, Virginia (-5.7 percent to 40.2 percent), were the only two markets to experience occupancy decreases during the quarter.
Miami-Hialeah, Florida, was the only market to post an ADR increase, rising 4.0 percent to US$182.70. Four markets reported ADR decreases of more than 10 percent: Tampa-St. Petersburg, Florida (-15.1 percent to US$101.59); Washington, D.C. (-12.6 percent to US$141.58); Phoenix, Arizona (-10.7 percent to US$120.49); and Chicago, Illinois (-10.3 percent to US$93.04).
Miami-Hialeah experienced the only double-digit RevPAR increase, jumping 14.1 percent to US$142.41, followed by Boston with an 8.6-percent increase to US$65.21. Houston reported the largest RevPAR decrease, dropping 16.8 percent to US$50.90, followed by Washington, D.C. (-12.6 percent to US$83.53) and Tampa-St. Petersburg (-12.5 percent to US$63.98).
About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.str.com.
Friday, April 9, 2010
Wednesday, February 24, 2010
January In U.S. Still Down Across Measurements - 2010-02-23 21:37:42 | Hotels
January In U.S. Still Down Across Measurements - 2010-02-23 Hotels Magazine
January In U.S. Still Down Across Measurements
PRESS RELEASE -- Hotels, 2/23/2010 1:37:42 PM
HENDERSONVILLE, Tennessee-The U.S. hotel industry posted declines in all three key performance measurements during January 2010, according to data from STR.
In year-over-year measurements, the industry's occupancy ended the month virtually flat with a 0.4-percent decrease to 45.1 percent. Average daily rate dropped 7.1 percent to finish the month at US$93.93. Revenue per available room for the month decreased 7.4 percent to finish at US$42.35.
"January's results continue the pattern of demand improvement that began toward the end of 2009," said Mark Lomanno, president of STR. "We expect this trend of positive demand growth to continue throughout most of this year. Hopefully, this will result in a firming of prices before too many more months go by."
Among the Chain Scale segments, three of the seven segments reported occupancy increases: the Luxury segment (+9.4 percent to 57.2 percent); the Upper Upscale segment (+5.4 percent to 56.1 percent); and the Upscale segment (+4.0 percent to 53.1 percent).
Among the Top 25 Markets, Boston, Massachusetts, reported the largest occupancy increase, up 18.3 percent to 48.9 percent, followed by Detroit, Michigan (+11.2 percent to 44.5 percent), and Miami-Hialeah, Florida (+10.6 percent to 74.6 percent). Houston, Texas, experienced the largest occupancy decrease, due to the lingering effects of Hurricane Ike, falling 15.7 percent to 49.0 percent.
Los Angeles-Long Beach, California, ended the month virtually flat in ADR growth with a 0.1-percent increase to US$119.80. Washington, D.C., which hosted President Barack Obama's presidential inauguration on 20 January 2009, posted the largest ADR decrease, falling 27.2 percent to US$132.65. Tampa-St. Petersburg, Florida, which hosted Super Bowl XLIII on 1 February 2009, also reported a large ADR decrease, falling 25.4 percent decrease to US$94.27.
Boston experienced the largest RevPAR increase, rising 11.9 percent to US$56.61. Three other markets reported RevPAR increases for the month: Los Angeles-Long Beach (+6.1 percent to US$74.07); Miami-Hialeah (+4.2 percent to US$124.05); and Atlanta, Georgia (+2.5 percent to US$43.85). Washington, D.C., posted the largest RevPAR decrease, falling 32.3 percent to US$64.19, followed by Tampa-St. Petersburg (-27.6 percent to US$48.29) and Houston (-23.8 percent to US$42.66).
January In U.S. Still Down Across Measurements
PRESS RELEASE -- Hotels, 2/23/2010 1:37:42 PM
HENDERSONVILLE, Tennessee-The U.S. hotel industry posted declines in all three key performance measurements during January 2010, according to data from STR.
In year-over-year measurements, the industry's occupancy ended the month virtually flat with a 0.4-percent decrease to 45.1 percent. Average daily rate dropped 7.1 percent to finish the month at US$93.93. Revenue per available room for the month decreased 7.4 percent to finish at US$42.35.
"January's results continue the pattern of demand improvement that began toward the end of 2009," said Mark Lomanno, president of STR. "We expect this trend of positive demand growth to continue throughout most of this year. Hopefully, this will result in a firming of prices before too many more months go by."
Among the Chain Scale segments, three of the seven segments reported occupancy increases: the Luxury segment (+9.4 percent to 57.2 percent); the Upper Upscale segment (+5.4 percent to 56.1 percent); and the Upscale segment (+4.0 percent to 53.1 percent).
Among the Top 25 Markets, Boston, Massachusetts, reported the largest occupancy increase, up 18.3 percent to 48.9 percent, followed by Detroit, Michigan (+11.2 percent to 44.5 percent), and Miami-Hialeah, Florida (+10.6 percent to 74.6 percent). Houston, Texas, experienced the largest occupancy decrease, due to the lingering effects of Hurricane Ike, falling 15.7 percent to 49.0 percent.
Los Angeles-Long Beach, California, ended the month virtually flat in ADR growth with a 0.1-percent increase to US$119.80. Washington, D.C., which hosted President Barack Obama's presidential inauguration on 20 January 2009, posted the largest ADR decrease, falling 27.2 percent to US$132.65. Tampa-St. Petersburg, Florida, which hosted Super Bowl XLIII on 1 February 2009, also reported a large ADR decrease, falling 25.4 percent decrease to US$94.27.
Boston experienced the largest RevPAR increase, rising 11.9 percent to US$56.61. Three other markets reported RevPAR increases for the month: Los Angeles-Long Beach (+6.1 percent to US$74.07); Miami-Hialeah (+4.2 percent to US$124.05); and Atlanta, Georgia (+2.5 percent to US$43.85). Washington, D.C., posted the largest RevPAR decrease, falling 32.3 percent to US$64.19, followed by Tampa-St. Petersburg (-27.6 percent to US$48.29) and Houston (-23.8 percent to US$42.66).
Wednesday, February 17, 2010
STR: US hotel industry ends '09 with double-digit RevPAR drop
STR: US hotel industry ends '09 with double-digit RevPAR drop
22 January 2010 9:53 AM
By Rachael Spann
Communications Coordinator, STR
HotelNewsNow.com columnist
HENDERSONVILLE, Tennessee—Revenue per available room fell 16.7 percent to US$53.71 during 2009, according to year-end reports from Smith Travel Research.
The industry’s occupancy fell 8.7 percent to 55.1 percent for the year and average daily rate dropped 8.8 percent to US$97.51.
“Good riddance to 2009, a year which we believe will go down as the worst in the modern hotel industry,” said Mark Lomanno, president at STR. “The combination of a distressed economy in conjunction with panic pricing drove RevPARs down to levels that were virtually incomprehensible just a year and a half ago. I look for a significant improvement in the key hotel performance indicators in 2010.”
None of the Top 25 Markets reported year-end increases in any of the three key metrics.
Houston, Texas, ended the year with the largest occupancy decrease, falling 17.0 percent to 55.8 percent due to the lingering effects of Hurricane Ike.
New Orleans, Louisiana, was the only market to end the year with an ADR decrease of less than 5 percent, falling 4.0 percent to US$113.52. New York, New York, reported the largest ADR decrease, falling 21.8 percent to US$215.14.
New York also ended the year with the largest RevPAR decrease, down 26.3 percent to US$166.11, followed by Phoenix with a 25.3-percent decrease to US$55.36.
Source: STR
December 2009
During December 2009, the industry’s occupancy fell 1.9 percent to end the month at 44.2 percent in year-over-year measurements. ADR dropped 6.0 percent to finish the month at US$93.73. RevPAR for the month decreased 7.8 percent to finish at US$41.46.
“While we were encouraged by the positive demand performance the industry experienced in December, we believe this may be more the result of an easy comparison to last year and the timing of New Year’s Eve,” Lomanno said. “In the coming months, we hope to see similar results.”
Among the chain-scale segments, two segments ended the month with occupancy increases. The luxury segment rose 5.0 percent to 54.6 percent, and the upper-upscale segment was up 2.6 percent to 52.2 percent. The Upscale segment ended the month virtually flat in occupancy with a 0.1-percent decrease to 50.0 percent.
Among the top 25 markets, New Orleans led the increases in all three key metrics. The market’s occupancy rose 11.0 percent to 53.4 percent, ADR increased 16.4 percent to US$120.12, and RevPAR jumped 29.2 percent to US$64.10.
Aside from New Orleans, two markets experienced occupancy increases of more than 5 percent: Oahu Island, Hawaii (+7.1 percent to 72.5 percent), and Tampa-St. Petersburg, Florida (+5.4 percent to 47.1 percent). Houston posted the only double-digit occupancy decrease, falling 21.4 percent to 44.7 percent.
New Orleans was the only market to report an ADR increase. San Francisco/San Mateo, California, posted the largest ADR decrease, falling 17.4 percent to US$117.39, followed by Houston (-13.3 percent to US$81.73), Chicago, Illinois (-13.2 percent to US$99.01), and Phoenix (-13.1 percent to US$89.35).
Norfolk-Virginia Beach ended the month flat in RevPAR at US$23.99. Houston reported the largest decline in RevPAR, which fell 31.8 percent to US$36.50, followed by San Francisco/San Mateo with a 22.1-percent decrease to US$69.90.
22 January 2010 9:53 AM
By Rachael Spann
Communications Coordinator, STR
HotelNewsNow.com columnist
HENDERSONVILLE, Tennessee—Revenue per available room fell 16.7 percent to US$53.71 during 2009, according to year-end reports from Smith Travel Research.
The industry’s occupancy fell 8.7 percent to 55.1 percent for the year and average daily rate dropped 8.8 percent to US$97.51.
“Good riddance to 2009, a year which we believe will go down as the worst in the modern hotel industry,” said Mark Lomanno, president at STR. “The combination of a distressed economy in conjunction with panic pricing drove RevPARs down to levels that were virtually incomprehensible just a year and a half ago. I look for a significant improvement in the key hotel performance indicators in 2010.”
None of the Top 25 Markets reported year-end increases in any of the three key metrics.
Houston, Texas, ended the year with the largest occupancy decrease, falling 17.0 percent to 55.8 percent due to the lingering effects of Hurricane Ike.
New Orleans, Louisiana, was the only market to end the year with an ADR decrease of less than 5 percent, falling 4.0 percent to US$113.52. New York, New York, reported the largest ADR decrease, falling 21.8 percent to US$215.14.
New York also ended the year with the largest RevPAR decrease, down 26.3 percent to US$166.11, followed by Phoenix with a 25.3-percent decrease to US$55.36.
Source: STR
December 2009
During December 2009, the industry’s occupancy fell 1.9 percent to end the month at 44.2 percent in year-over-year measurements. ADR dropped 6.0 percent to finish the month at US$93.73. RevPAR for the month decreased 7.8 percent to finish at US$41.46.
“While we were encouraged by the positive demand performance the industry experienced in December, we believe this may be more the result of an easy comparison to last year and the timing of New Year’s Eve,” Lomanno said. “In the coming months, we hope to see similar results.”
Among the chain-scale segments, two segments ended the month with occupancy increases. The luxury segment rose 5.0 percent to 54.6 percent, and the upper-upscale segment was up 2.6 percent to 52.2 percent. The Upscale segment ended the month virtually flat in occupancy with a 0.1-percent decrease to 50.0 percent.
Among the top 25 markets, New Orleans led the increases in all three key metrics. The market’s occupancy rose 11.0 percent to 53.4 percent, ADR increased 16.4 percent to US$120.12, and RevPAR jumped 29.2 percent to US$64.10.
Aside from New Orleans, two markets experienced occupancy increases of more than 5 percent: Oahu Island, Hawaii (+7.1 percent to 72.5 percent), and Tampa-St. Petersburg, Florida (+5.4 percent to 47.1 percent). Houston posted the only double-digit occupancy decrease, falling 21.4 percent to 44.7 percent.
New Orleans was the only market to report an ADR increase. San Francisco/San Mateo, California, posted the largest ADR decrease, falling 17.4 percent to US$117.39, followed by Houston (-13.3 percent to US$81.73), Chicago, Illinois (-13.2 percent to US$99.01), and Phoenix (-13.1 percent to US$89.35).
Norfolk-Virginia Beach ended the month flat in RevPAR at US$23.99. Houston reported the largest decline in RevPAR, which fell 31.8 percent to US$36.50, followed by San Francisco/San Mateo with a 22.1-percent decrease to US$69.90.
Friday, February 12, 2010
Fitch: Average loan size in special servicing increases
Fitch: Average loan size in special servicing increases
12 February 2010 8:29 AM
HNN Newswire
Fitch Ratings' U.S. CMBS Market Trends highlights and trends
Average Loan Size in Special Servicing Increasing
Fitch Ratings reports the average loan size for loans moving into special servicing has increased 2.4 times from a year ago to $17.2 million. Five of the loans newly transferred in January had balances in excess of $100 million. The larger loan balances have been a factor in the rise in Fitch Ratings' loan delinquency index (LDI).
Within the agency's rated universe of $452.9 billion, there are 621 loans greater than $100 million ($136 billion). Of these loans, 558 or 93% by dollar balance were securitized in 2005 or later vintages when underwriting practices began to deteriorate. Currently, 88 of the 558 are at the special servicer and 87 are considered Fitch loans of concern . Should these loans of concern default, an additional $18 billion would move to special servicing.
Fitch Ratings tracks the loans that move into special servicing on a daily basis for the 473 transactions in its portfolio. In January, 248 loans totaling $4.27 billion moved into special servicing. This brings a total of 2,880 loans, representing 10.4% of Fitch's rated universe by dollar balance in special servicing. Of the loans transferred in January, 55% were due to imminent default and 35% were due to monetary default.
The property type with the largest influx in January was retail at $1.4B or 33% of the January transfers. The largest of the new transfers was the $550 million Palisades Center retail loan in the COMM 2005-FL10 transaction. The loan, which is collateralized by a two million square foot super regional center in West Nyack, NY, transferred for imminent default as it approaches its final maturity without available extensions or a refinancing commitment. Property performance remains stable with the most recent servicer reported occupancy at 100% as of September 2009 and the most recent reported debt service coverage ratio is 2.25 times as of year end 2008. The transfer of the loan highlights the continued limited liquidity available to refinance large loans even when they are performing.
The distribution of property types in special servicing are:
•Hotel: 275 loans totaling $11.0 billion, out of a universe of 2,131 loans, $49.3 billion
•Multifamily: 872 loans totaling $9.8 billion, out of a universe of 9,320 loans, $62.2 billion
•Office: 509 loans totaling $7.5 billion, out of a universe of 6,559 loans, $141.5 billion
•Retail: 842 loans totaling $15.0 billion, out of a universe of 12,837 loans, $127.3 billion
Fitch Ratings continues to maintain a negative outlook for all property types as performance of commercial properties generally lags the economy. Hotel loan defaults, especially luxury brands, which have been particularly hard hit by the recession, will continue to outpace defaults of multifamily, retail, and office properties in the near term. Currently 22% of the hotel loans within The agency's portfolio are in special servicing, followed by 16% of multifamily loans, 12% of retail loans, and only 5% of office loans. Of the hotel loans transferred to special servicing in 2009, 89% were due to imminent default and many later became delinquent.
Contact: Mary MacNeill +1-212 908-0785
View the chart of the largest rated specially serviced loans
New Issuance
GTP Towers Issuer, LLC Global Tower Series 2010-1
Fitch Ratings has issued a presale report on GTP Towers Issuer, LLC Secured Tower Revenue Notes, Global Tower Series 2010-1. The transaction is an issuance of notes backed by mortgages representing no less than 80% of the annualized run rate NCF and is guaranteed by the direct parent of the borrower. Those guarantees are secured by a pledge and first priority perfected security interest in 100% of the equity interest of the borrower, which owns or leases 1,351 wireless communication sites, and of its direct parent, respectively.
Fitch rates CSMC Series 2010-RR1
This transaction is a resecuritization of the ownership interest in three commercial mortgage-backed certificates which total $373,960,000. The transaction consists of three non-pooled re-REMIC bond groups each backed by one underlying super-senior A-4 bond.
Rating Actions
Fitch Ratings affirms RBSCF Trust 2009-RR2 Pass-Through Certificates, Series 2009-RR2
Class A-2FX of ML-CFC 2007-5
Fitch Ratings has assigned a 'AAA/LS2' rating to the $25,000,000 class A-2FX of ML-CFC Commercial Mortgage Trust 2007-5. The creation of the A-2FX class is the result of the bifurcation of the existing $60 million class A-2FL certificate. There has been a partial termination of the swap agreement for class A-2FL with $25 million of the certificate balance being re-allocated to the new fixed-rate class A-2FX certificate. Class A-2FL remains floating rate with a reduced certificate balance of $35 million.
Performance Reports
Wachovia Bank Commercial Mortgage Trust, Series 2005-C19
Recent Special Servicing Transfers
The list below summarizes loans transferred to special servicing during the period of
February 5-10. This list includes loans only within the Fitch Ratings' rated portfolio
and with balances greater than $20 million.
Transaction: Morgan Stanley Capital 2007-XLF
Property: 155 Swanson Road
City/State: Boxborough, MA
Property Type: Office
Balance: $85.5 million
MS: Midland Loan Services
SS: CT Investment Management Co.
Reason for Transfer: Maturity Default
Transaction: UBS 2007-FL1
Property: Rexcorp Princeton Office Portfolio
City/State: Princeton, NJ
Property Type: Office
Balance: $48.0 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: BACM 2007-1
Property: Indian Hills Apartments
City/State: Euclid, OH
Property Type: Multifamily
Balance: $46.0 million
MS: Bank of America
SS: CWCapital Asset Management
Reason for Transfer: Monetary Default
Transaction: COMM 2006-C8
Property: Shoppes at Dadeland
City/State: Miami, FL
Property Type: Retail
Balance: $39.0 million
MS: Midland Loan Services
SS: LNR Partners
Reason for Transfer: Monetary Default
Transaction: Morgan Stanley 2007-IQ16
Property: Crown Plaza-Addison
City/State: Addison, TX
Property Type: Hotel
Balance: $37.0 million
MS: Berkadia
SS: Centerline Capital Group
Reason for Transfer: Imminent Default
Transaction: GCCFC 2007-GG9
Property: Aqua Via Apartments
City/State: Oakland, CA
Property Type: Multfamily
Balance: $34.0 million
MS: Wachovia
SS: LNR Partners
Reason for Transfer: Imminent Default
Transaction: Chase 2000-2
Property: Embassy Suites Atlanta-Buckhead
City/State: Atlanta, GA
Property Type: Hotel
Balance: $32.5 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: Chase 2000-2
Property: Embassy Suites San Francisco
City/State: San Francisco, CA
Property Type: Hotel
Balance: $22.3 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: UBS 2007-FL1
Property: St. Anthony Hotel
City/State: San Antonio, TX
Property Type: Hotel
Balance: $22.3 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Maturity Default
12 February 2010 8:29 AM
HNN Newswire
Fitch Ratings' U.S. CMBS Market Trends highlights and trends
Average Loan Size in Special Servicing Increasing
Fitch Ratings reports the average loan size for loans moving into special servicing has increased 2.4 times from a year ago to $17.2 million. Five of the loans newly transferred in January had balances in excess of $100 million. The larger loan balances have been a factor in the rise in Fitch Ratings' loan delinquency index (LDI).
Within the agency's rated universe of $452.9 billion, there are 621 loans greater than $100 million ($136 billion). Of these loans, 558 or 93% by dollar balance were securitized in 2005 or later vintages when underwriting practices began to deteriorate. Currently, 88 of the 558 are at the special servicer and 87 are considered Fitch loans of concern . Should these loans of concern default, an additional $18 billion would move to special servicing.
Fitch Ratings tracks the loans that move into special servicing on a daily basis for the 473 transactions in its portfolio. In January, 248 loans totaling $4.27 billion moved into special servicing. This brings a total of 2,880 loans, representing 10.4% of Fitch's rated universe by dollar balance in special servicing. Of the loans transferred in January, 55% were due to imminent default and 35% were due to monetary default.
The property type with the largest influx in January was retail at $1.4B or 33% of the January transfers. The largest of the new transfers was the $550 million Palisades Center retail loan in the COMM 2005-FL10 transaction. The loan, which is collateralized by a two million square foot super regional center in West Nyack, NY, transferred for imminent default as it approaches its final maturity without available extensions or a refinancing commitment. Property performance remains stable with the most recent servicer reported occupancy at 100% as of September 2009 and the most recent reported debt service coverage ratio is 2.25 times as of year end 2008. The transfer of the loan highlights the continued limited liquidity available to refinance large loans even when they are performing.
The distribution of property types in special servicing are:
•Hotel: 275 loans totaling $11.0 billion, out of a universe of 2,131 loans, $49.3 billion
•Multifamily: 872 loans totaling $9.8 billion, out of a universe of 9,320 loans, $62.2 billion
•Office: 509 loans totaling $7.5 billion, out of a universe of 6,559 loans, $141.5 billion
•Retail: 842 loans totaling $15.0 billion, out of a universe of 12,837 loans, $127.3 billion
Fitch Ratings continues to maintain a negative outlook for all property types as performance of commercial properties generally lags the economy. Hotel loan defaults, especially luxury brands, which have been particularly hard hit by the recession, will continue to outpace defaults of multifamily, retail, and office properties in the near term. Currently 22% of the hotel loans within The agency's portfolio are in special servicing, followed by 16% of multifamily loans, 12% of retail loans, and only 5% of office loans. Of the hotel loans transferred to special servicing in 2009, 89% were due to imminent default and many later became delinquent.
Contact: Mary MacNeill +1-212 908-0785
View the chart of the largest rated specially serviced loans
New Issuance
GTP Towers Issuer, LLC Global Tower Series 2010-1
Fitch Ratings has issued a presale report on GTP Towers Issuer, LLC Secured Tower Revenue Notes, Global Tower Series 2010-1. The transaction is an issuance of notes backed by mortgages representing no less than 80% of the annualized run rate NCF and is guaranteed by the direct parent of the borrower. Those guarantees are secured by a pledge and first priority perfected security interest in 100% of the equity interest of the borrower, which owns or leases 1,351 wireless communication sites, and of its direct parent, respectively.
Fitch rates CSMC Series 2010-RR1
This transaction is a resecuritization of the ownership interest in three commercial mortgage-backed certificates which total $373,960,000. The transaction consists of three non-pooled re-REMIC bond groups each backed by one underlying super-senior A-4 bond.
Rating Actions
Fitch Ratings affirms RBSCF Trust 2009-RR2 Pass-Through Certificates, Series 2009-RR2
Class A-2FX of ML-CFC 2007-5
Fitch Ratings has assigned a 'AAA/LS2' rating to the $25,000,000 class A-2FX of ML-CFC Commercial Mortgage Trust 2007-5. The creation of the A-2FX class is the result of the bifurcation of the existing $60 million class A-2FL certificate. There has been a partial termination of the swap agreement for class A-2FL with $25 million of the certificate balance being re-allocated to the new fixed-rate class A-2FX certificate. Class A-2FL remains floating rate with a reduced certificate balance of $35 million.
Performance Reports
Wachovia Bank Commercial Mortgage Trust, Series 2005-C19
Recent Special Servicing Transfers
The list below summarizes loans transferred to special servicing during the period of
February 5-10. This list includes loans only within the Fitch Ratings' rated portfolio
and with balances greater than $20 million.
Transaction: Morgan Stanley Capital 2007-XLF
Property: 155 Swanson Road
City/State: Boxborough, MA
Property Type: Office
Balance: $85.5 million
MS: Midland Loan Services
SS: CT Investment Management Co.
Reason for Transfer: Maturity Default
Transaction: UBS 2007-FL1
Property: Rexcorp Princeton Office Portfolio
City/State: Princeton, NJ
Property Type: Office
Balance: $48.0 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: BACM 2007-1
Property: Indian Hills Apartments
City/State: Euclid, OH
Property Type: Multifamily
Balance: $46.0 million
MS: Bank of America
SS: CWCapital Asset Management
Reason for Transfer: Monetary Default
Transaction: COMM 2006-C8
Property: Shoppes at Dadeland
City/State: Miami, FL
Property Type: Retail
Balance: $39.0 million
MS: Midland Loan Services
SS: LNR Partners
Reason for Transfer: Monetary Default
Transaction: Morgan Stanley 2007-IQ16
Property: Crown Plaza-Addison
City/State: Addison, TX
Property Type: Hotel
Balance: $37.0 million
MS: Berkadia
SS: Centerline Capital Group
Reason for Transfer: Imminent Default
Transaction: GCCFC 2007-GG9
Property: Aqua Via Apartments
City/State: Oakland, CA
Property Type: Multfamily
Balance: $34.0 million
MS: Wachovia
SS: LNR Partners
Reason for Transfer: Imminent Default
Transaction: Chase 2000-2
Property: Embassy Suites Atlanta-Buckhead
City/State: Atlanta, GA
Property Type: Hotel
Balance: $32.5 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: Chase 2000-2
Property: Embassy Suites San Francisco
City/State: San Francisco, CA
Property Type: Hotel
Balance: $22.3 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: UBS 2007-FL1
Property: St. Anthony Hotel
City/State: San Antonio, TX
Property Type: Hotel
Balance: $22.3 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Maturity Default
Friday, February 5, 2010
US CMBS Delinquencies - December 2009
The delinquent status of the Extended Stay America loan was a large contributor to a 129 basis-point increase in overall U.S. CMBS delinquencies last month to 6 percent, according to Fitch Ratings’ weekly U.S. CMBS newsletter.
“While the Extended Stay loan is a significant contributor to the increase in delinquencies, a steady up-tick in all property types will lead to continued increases in the months ahead,” said managing director Susan Merrick. “Even without the classification of the Extended Stay loan as delinquent, the Index would have increased to 5.10 percent instead of 6 percent.”
For the fifth consecutive month, each of the five main property types saw an increase in delinquencies. Delinquency rates for those properties compared to last month are as follows:
• Office: 3.06% (vs. 2.66%)
• Hotel: 16.44% (vs. 9.13%)
• Retail: 4.94% (vs. 4.25%)
• Multifamily: 8.33% (vs. 7.54%)
• Industrial: 3.73% (vs. 3.57%)
“While the Extended Stay loan is a significant contributor to the increase in delinquencies, a steady up-tick in all property types will lead to continued increases in the months ahead,” said managing director Susan Merrick. “Even without the classification of the Extended Stay loan as delinquent, the Index would have increased to 5.10 percent instead of 6 percent.”
For the fifth consecutive month, each of the five main property types saw an increase in delinquencies. Delinquency rates for those properties compared to last month are as follows:
• Office: 3.06% (vs. 2.66%)
• Hotel: 16.44% (vs. 9.13%)
• Retail: 4.94% (vs. 4.25%)
• Multifamily: 8.33% (vs. 7.54%)
• Industrial: 3.73% (vs. 3.57%)
Wednesday, January 27, 2010
STR releases updated forecasts for 2010, 2011
STR releases updated forecasts for 2010, 2011
26 January 2010 9:18 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry is projected to end 2010 with decreases in two of the three key performance measurements, according to STR’s monthly forecast update.
STR projects 2010 occupancy to be flat at 55.1 percent, ADR to decrease 3.2 percent to US$94.39, and revenue per available room to drop 3.2 percent to US$51.99.
Supply growth and demand growth during 2010 are both expected to increase 1.8 percent.
“We have believed for quite some time that it will take the better part of 2010 for the hotel industry to regain its footing,” said Mark Lomanno, president of STR. “Our latest forecast reflects what we believe will be a somewhat challenging first half of the year. Momentum will build in the second half of 2010, which will lead to the beginning of a turnaround in 2011.
“The high-end business travelers will drive the shape of recovery almost certainly,” Lomanno added. “There has been substantial recovery at the high end of the market during the last couple of months.”
The outlook indicates that the industry’s performance will turn positive in 2011. STR projects increases in all three key performance metrics during 2011: Occupancy is projected to increase 2.2 percent to 56.3 percent; ADR is forecasted to rise 2.0 to US$96.28; and RevPAR is expected to grow 4.2-percent to US$54.18.
Supply in 2011 is projected to be up 1.0 percent and demand is expected to increase 3.2 percent.
About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, and pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC and HotelNewsNow.com. For more information, please visit www.str.com.
Media contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann
Communications Coordinator
spann@str.com
+1 (615) 824-8664 ext. 3305
26 January 2010 9:18 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry is projected to end 2010 with decreases in two of the three key performance measurements, according to STR’s monthly forecast update.
STR projects 2010 occupancy to be flat at 55.1 percent, ADR to decrease 3.2 percent to US$94.39, and revenue per available room to drop 3.2 percent to US$51.99.
Supply growth and demand growth during 2010 are both expected to increase 1.8 percent.
“We have believed for quite some time that it will take the better part of 2010 for the hotel industry to regain its footing,” said Mark Lomanno, president of STR. “Our latest forecast reflects what we believe will be a somewhat challenging first half of the year. Momentum will build in the second half of 2010, which will lead to the beginning of a turnaround in 2011.
“The high-end business travelers will drive the shape of recovery almost certainly,” Lomanno added. “There has been substantial recovery at the high end of the market during the last couple of months.”
The outlook indicates that the industry’s performance will turn positive in 2011. STR projects increases in all three key performance metrics during 2011: Occupancy is projected to increase 2.2 percent to 56.3 percent; ADR is forecasted to rise 2.0 to US$96.28; and RevPAR is expected to grow 4.2-percent to US$54.18.
Supply in 2011 is projected to be up 1.0 percent and demand is expected to increase 3.2 percent.
About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, and pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC and HotelNewsNow.com. For more information, please visit www.str.com.
Media contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann
Communications Coordinator
spann@str.com
+1 (615) 824-8664 ext. 3305
STR reports US performance results for fourth-quarter 2009
STR reports US performance results for fourth-quarter 2009
27 January 2010 8:06 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported decreases in all three key performance metrics for fourth-quarter 2009 in year-over-year measurements, according to data from STR.
The industry’s occupancy dropped 4.4 percent to 50.6 percent, average daily rate fell 7.6 percent to US$95.79, and revenue per available room decreased 11.7 percent to US$48.50.
“Fourth-quarter U.S. industry performance declines slowed, but RevPAR was still down nearly 12 percent,” said Bobby Bowers, senior vice president at STR. “Supply growth seems stuck at more than 3 percent while demand (roomnights sold) had its best quarterly performance of 2009 – down 1.4 percent.
“Occupancy is beginning to show some traction; 11 of the Top 25 Markets experienced occupancy gains in the fourth quarter,” Bowers continued. “ADR continues to present a challenge, down 7.6 percent in the quarter. We anticipate somewhat better performance in 2010, particularly in the second half.”
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 rose 1.4 percent to 60.6 percent. The Upper Upscale segment ended the quarter virtually flat with a 0.1-percent decrease to 61.1 percent.
Among the Top 25 Markets, New Orleans, Louisiana, was the only market to report increases in all three key metrics. The market’s occupancy rose 3.1 percent to 58.1 percent, ADR was up 0.2 percent to US$117.90, and RevPAR increased 3.3 percent to US$68.49.
Oahu Island, Hawaii, reported the largest occupancy increase, rising 5.7 percent to 74.0 percent. Houston, Texas, experienced the largest occupancy decrease, falling 27.0 percent to 51.5 percent due to the lingering effects of Hurricane Ike.
New Orleans was the only top market to report an ADR increase for the quarter. New York, New York, led the ADR decreases, falling 15.5 percent to US$254.22, followed by Houston (-15.1 percent to US$87.22) and Phoenix, Arizona (-14.5 percent to US$98.65).
Five markets experienced RevPAR declines of more than 15 percent: Houston (-38.0 percent to US44.91); Seattle, Washington (-18.0 percent to US55.59); Phoenix (-17.2 percent to US$50.36); Dallas, Texas (-16.7 percent to US$40.50); and Chicago, Illinois (-15.9 percent to US$63.29).
U.S. hotel performance for 2009 by quarter (in year-over-year comparisons): Occupancy (%) % change ADR ($) % change RevPAR ($) % change
1st quarter 51.4 -10.9 100.13 -7.7 51.44 -17.7
2nd quarter 57.8 -10.9 97.37 -9.7 56.25 -19.5
3rd quarter 60.5 -7.9 96.84 -9.8 58.61 -16.9
4th quarter 50.6 -4.4 95.79 -7.6 48.50 -11.7
Year-to-date 55.1 -8.7 97.51 -8.8 53.71 -16.7
Source: STR
About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, and pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC and HotelNewsNow.com. For more information, please visit www.str.com.
Media Contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann
Communications Coordinator
spann@str.com
+1 (615) 824-8664 ext. 3305
27 January 2010 8:06 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported decreases in all three key performance metrics for fourth-quarter 2009 in year-over-year measurements, according to data from STR.
The industry’s occupancy dropped 4.4 percent to 50.6 percent, average daily rate fell 7.6 percent to US$95.79, and revenue per available room decreased 11.7 percent to US$48.50.
“Fourth-quarter U.S. industry performance declines slowed, but RevPAR was still down nearly 12 percent,” said Bobby Bowers, senior vice president at STR. “Supply growth seems stuck at more than 3 percent while demand (roomnights sold) had its best quarterly performance of 2009 – down 1.4 percent.
“Occupancy is beginning to show some traction; 11 of the Top 25 Markets experienced occupancy gains in the fourth quarter,” Bowers continued. “ADR continues to present a challenge, down 7.6 percent in the quarter. We anticipate somewhat better performance in 2010, particularly in the second half.”
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 rose 1.4 percent to 60.6 percent. The Upper Upscale segment ended the quarter virtually flat with a 0.1-percent decrease to 61.1 percent.
Among the Top 25 Markets, New Orleans, Louisiana, was the only market to report increases in all three key metrics. The market’s occupancy rose 3.1 percent to 58.1 percent, ADR was up 0.2 percent to US$117.90, and RevPAR increased 3.3 percent to US$68.49.
Oahu Island, Hawaii, reported the largest occupancy increase, rising 5.7 percent to 74.0 percent. Houston, Texas, experienced the largest occupancy decrease, falling 27.0 percent to 51.5 percent due to the lingering effects of Hurricane Ike.
New Orleans was the only top market to report an ADR increase for the quarter. New York, New York, led the ADR decreases, falling 15.5 percent to US$254.22, followed by Houston (-15.1 percent to US$87.22) and Phoenix, Arizona (-14.5 percent to US$98.65).
Five markets experienced RevPAR declines of more than 15 percent: Houston (-38.0 percent to US44.91); Seattle, Washington (-18.0 percent to US55.59); Phoenix (-17.2 percent to US$50.36); Dallas, Texas (-16.7 percent to US$40.50); and Chicago, Illinois (-15.9 percent to US$63.29).
U.S. hotel performance for 2009 by quarter (in year-over-year comparisons): Occupancy (%) % change ADR ($) % change RevPAR ($) % change
1st quarter 51.4 -10.9 100.13 -7.7 51.44 -17.7
2nd quarter 57.8 -10.9 97.37 -9.7 56.25 -19.5
3rd quarter 60.5 -7.9 96.84 -9.8 58.61 -16.9
4th quarter 50.6 -4.4 95.79 -7.6 48.50 -11.7
Year-to-date 55.1 -8.7 97.51 -8.8 53.71 -16.7
Source: STR
About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, and pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC and HotelNewsNow.com. For more information, please visit www.str.com.
Media Contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann
Communications Coordinator
spann@str.com
+1 (615) 824-8664 ext. 3305
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