U.S. hotel industry posts record year in 2017
Compared with 2016: occupancy: +0.9% to 65.9%; average daily rate (ADR): +2.1% to $126.72; revenue per available room (RevPAR): +3.0% to $83.57.
The absolute values in those three key performance metrics were each the highest STR has ever benchmarked.
The U.S. hotel industry also set records for supply (roughly 1.87 billion roomnights available) and demand (roughly 1.23 billion roomnights sold).
Based on percentage growth for the year, demand (+2.7%) significantly outpaced supply (+1.8%), even though the supply growth figure was the largest for the industry since 2009.
Among the Top 25 Markets, Houston, Texas, reported the year’s largest spike in RevPAR (+10.5% to $71.97), due primarily to the largest increase in occupancy (+7.1% to 66.7%). The market’s performance was lifted late in the year as the effects of Hurricane Harvey filled hotels with displaced residents, relief workers, insurance adjustors and other hurricane-related demand.
Nashville, Tennessee, posted the largest rise in ADR (+6.2% to $142.82) despite a supply-growth-related decline in occupancy (-0.8% to 74.1%).
Orlando, Florida, reported the only other double-digit jump in RevPAR (+10.0% to $96.40), due to the second-highest increases in occupancy (+4.9% to 79.3%) and ADR (4.8% to $121.53).
Overall, 18 of the Top 25 Markets recorded year-over-year RevPAR growth in 2017.
With healthy supply growth ahead of its Super Bowl host year, Minneapolis/St. Paul, Minnesota-Wisconsin, reported the steepest declines in ADR (-2.1% to $115.89) and RevPAR (-3.6% to $77.59).
Also affected by supply growth, Dallas, Texas, experienced the largest drop in occupancy (-2.5% to 69.6%).
In absolute values, New York, New York, recorded the highest levels in occupancy (86.7%), ADR ($255.54) and RevPAR ($221.60). ■