Annual Hotel Key Performance Metrics Decline in September

Annual hotel key performance metrics declined in the U.S. during the week of 9-15 September 2018, according to data from STR.

In comparison with the week of 10-16 September 2017, the industry recorded the following:

• Occupancy: -3.3% to 69.8%
• Average daily rate (ADR): -0.3% to US$131.03
• Revenue per available room (RevPAR): -3.7% to US$91.47

“There were a lot of different factors to parse in the week’s results,” said Jan Freitag, STR’s senior VP of lodging insights. “Performance levels dropped in several major markets as Hurricane Florence moved up the Atlantic Seaboard.

Among the Top 25 Markets, Miami/Hialeah, Florida, reported the largest increase in RevPAR (+8.0% to US$80.94), due to the only double-digit increase in occupancy (+17.4% to 60.7%).

New Orleans, Louisiana, posted the largest lift in ADR (+9.4% to US$142.12).

Houston, Texas, saw the steepest declines in occupancy (-32.1% to 59.6%) and RevPAR (-38.8% to US$62.31). Houston’s hotel performance was lifted in the weeks and months that followed Hurricane Harvey in 2017 as properties filled with displaced residents, relief workers, insurance adjustors, media members, etc.

Norfolk/Virginia Beach, Virginia, registered the only double-digit decline in ADR (-11.3% to US$85.80) and the second-largest decreases in occupancy (-21.9% to 48.9%) and RevPAR (-30.7% to 41.93%).

Orlando, Florida, reported the third-largest declines in each of the three key performance metrics: occupancy (-15.8% to 64.5%), ADR (-8.7% to US$101.72) and RevPAR (-23.1% to US$65.58).