STR Reports US Hotel Occupancy Increases for Week Ending June 30, 2012

Hotel Occupancy Increases 6.9% and ADR Increases 5.3% to US$106.27

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. July 10, 2012

July 9, 2012 - The U.S. hotel industry experienced increases in all three key performance metrics during the week of 24-30 June 2012, according to data from STR.

In year-over-year comparisons for the week, occupancy ended the week with a 6.9-percent increase to 71.7 percent, average daily rate increased 5.3 percent to US$106.27 and revenue per available room rose 12.6 percent to US$76.21.

Nine of the Top 25 Markets had double-digit increases in occupancy rate. Leading the way was Phoenix, Arizona, with a 19.3-percent increase to finish the week at 54.4 percent. Other top markets with occupancy increases included Houston, Texas, with a 17.3-percent rise to 68.6 percent and Dallas, Texas, with a 16.5-percent increase to 69.6 percent. Only two markets among the Top 25 Markets showed occupancy declines for the week: New Orleans, Louisiana (-5.4 percent to 62.9 percent) and Miami-Hialeah, Florida (-3.5 percent to 71.1 percent).

All but one of the Top 25 Markets experienced increases in ADR. The leaders were: San Francisco-San Mateo, California (+17.7 percent to US$172.84); Boston, Massachusetts (+17.1 percent to US$170.31); and Atlanta, Georgia (+12.8 percent to US$92.50). New Orleans was the only Top 25 Market to see a decline in rate as it dropped 19.7 percent to US$108.42.

On the RevPAR front, 12 of the Top 25 Markets experienced increases of more than 20 percent. Boston's 34.4-percent RevPAR increase to US$146.46 paced the Top 25 Markets, while San Francisco-San Mateo experienced a 30.1-percent rise to US$159.60. Houston finished third among the nation's largest markets with a 29.7-percent increase to US$64.86. New Orleans posted the only decline among the Top 25 markets, with its RevPAR decreasing 24.0 percent to $68.18.

STR officials attributed the large increases to favorable year-over-year comparisons. During 2011, business and group travel slowed in the comparable week leading up to a long weekend created by the U.S. July Fourth holiday falling on a Monday. That didn't happen this year, which led to more lucrative business and group bookings during the final week of June.