Hotel Industry Posts Gains Despite Lower Occupancies

 

Despite a downturn in occupancy levels, U.S. hotels posted increases in both average daily rate and revenue per available room for the month of July, according to Smith Travel Research.

In year-over-year measurements, occupancy fell 2.1 percent to end the month at 69.3 percent, while ADR increased 2.5 percent to $106.50, and RevPAR for July increased 0.4 percent to $73.81.

“Occupancy declined, due primarily to continued supply growth, but room demand [room nights sold] actually increased slightly,” said Bobby Bowers, senior VP of operations at STR. “Total industry RevPAR inched ahead 0.4 percent, but the largest 25 markets experienced 2.1 percent growth, driven by New York, Houston, San Francisco, and D.C.”

Year-to-date occupancy fell 2.5 percent to 62.6 percent, while ADR reached $107.45, a 3.9 percent increase. At $67.24, RevPAR is up 1.3 percent for the first seven months of the year.

The dip in occupancy rate in the U.S. for the month of July was reflected the world over. Occupancies fell in all but the Middle East/Africa region, which ranked first in each of the three performance categories.

European hotels sampled by STR Global showed ADR growth of 14.1 percent for July, but occupancies fell 2.3 percent to 70.3 percent and RevPAR was up 11.5 percent, averaging $117.22.

Performance in the Asia-Pacific region was bolstered by strong rate growth--up 14.8 percent in July--to offset declining occupancies, according to an STR release. July saw Asia-Pacific hotel occupancy fall 7 percent to 65.4 percent, the worst decline among the four regions, although the region’s RevPAR gained 6.8 percent in July, averaging $89.32.

Performance in the Americas region was weakened by the Caribbean sub-region, which was the only area in the survey to record declining room rates (down 8 percent) as well as declining RevPAR (down 9.9 percent) for the month. For more, visit Smith Travel Research.


Commenting terms of use blog comments powered by Disqus

         Subscribe in NewsGator Online   Subscribe in Bloglines

Want to use this article? Click here for options!
© 2008 Penton Media Inc.

Meetings Collaborative

Rate your experience with meeting venues and suppliers.

Facility / Hotel

 
Powered by: Meetings Collaborative

The Meeting Planning Blog

Face2Face Latest Posts

Digital Edition on MeetingsNet

Apex Webinars

Creating Green-Meetings Standards

An industrywide effort to produce achievable, voluntary standards for greener meetings and events is under way. The Accepted Practices Exchange (APEX), an initiative of the Convention Industry Council, is working with the Environmental Protection Agency and ASTM International Standards to create baseline guidelines that both meeting managers and the hospitality community can embrace. Join us for a free webinar.


View it Now! | View APEX Archives

Webinars

What Meeting Planners Need to Know to Manage E-Meetings

Virtual meetings save time and money, get a thumbs-up from the “green” crowd, and offer new ways for companies and organizations to communicate, market, and sell. It’s time for meeting managers to start booking and managing them.
View it Now | View Archived Webinars

CVB Supplement 2008

The Changing Face of CVBs

Featuring:
*Changing Face of CVB's
*CVB's Go Green

·Go to Digital Edition

Recent Comments

Powered by Disqus

Back to Top

Explore Our Newsletters

Meeting Planner Survival Guide

NEW & IMPROVED! Whether you're a novice planner or a veteran, this compilation of must-read articles is your meeting planning resource.

Pharma Meeting Management Forums

Pharmaceutical Meeting Management Forums-Medical Meetings and the Center for Business Intelligence present two conferences, West Coast, Dec. 8-9, in San Diego, and East Coast, March 29-31, in Baltimore.

Suppliers/
Facilities/CVBs

MeetingsNet makes it easy to find the CVBs, tourist boards, and facilities you need for your next meeting.

Deals &
Discounts

Special group hotel offers brought to you by MeetingsNet.

Find A Job

Targeted to all aspects of the hospitality and special events industry.

Education
Central

Upcoming Events, Live and Online

Inside Current Issue

Oct MTNGS Cover

October 2008

August AM

August 2008

June AM

June 2008

April AM

April 2008

Feb MTNGS Cover

February 2008

Browse Back Issues