Average U.S. Hotel Occupancy Matches All-Time High
The 12-month moving average for hotel occupancy in the United States tied an all-time record of 64.9 percent in March, reported Jan Freitag, senior VP of strategic development for lodging-data provider STR. Occupancy was actually the last holdout in terms of performance: The industry is now experiencing record high numbers for rooms available, rooms sold, revenue, average daily rate, occupancy and revenue per available room, Freitag noted in Hotel News Now, STR's online publication. "I would expect more record-breaking demand and revenue numbers for the foreseeable future," Freitag added. Occupancy in March was 66.8 percent, which is the highest ever recorded by STR for that month, with more than 100 million room nights sold. Average daily rate for the month grew by 5 percent, which makes it the second consecutive month that rate acceleration eclipsed the previous month's percentage. Revenue per available room shot up by 7.4 percent year-over-year, the 61st consecutive month of RevPAR increases. Supply growth has been surging, up 1.1 percent in March, which could indicate a performance slowdown on the horizon. "It will be interesting to see if we revise this number down next month or if this is indeed the long-awaited impact of the under-construction rooms opening up," said Freitag. "If so, brace yourself for impacts on occupancy growth and eventually impacts on absolute occupancy in middle to late 2015."