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
Wednesday, January 27, 2010
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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