US Hotel Growth Slows, But Numbers Still at Record Levels
Hotels in the United States posted mostly positive numbers for the month of May, according to lodging statistics provider STR, but the rate of increase has slowed. Average daily rate was up by 2.4 percent year-over-year for May, while occupancy was down by a hair, dropping by 0.5 percent. Revenue per available room growth slowed to 1.9 percent, which is the lowest growth posted for any month in 2016. The year-to-date RevPAR growth of 3 percent is the lowest since the lodging recovery began in 2010.
"The 5 percent RevPAR increase we saw last month appears to have been an outlier rather than a reversal of fortune," said Patrick Mayock, STR's senior director of research and development. "On an absolute basis, however, the hotel industry is actually quite strong, with occupancy, ADR and RevPAR all reaching record highs for the May year-to-date period."
Of the top 25 markets, Dallas posted the only double-digit RevPAR growth for the month, at 12.9 percent. The city also had the highest occupancy growth (up by 5.3 percent to 73.3 percent) and experienced a 7.2 percent year-over-year ADR increase. Los Angeles posted the only double-digit increase to ADR for the month, rising by 10.1 percent to $167.75.
Another Texas city, Houston, experienced the largest year-over-year drops, with occupancy falling by 8.2 percent, ADR down by 6.5 percent and RevPAR plummeting by 14.2 percent.
Overall, the top 25 underperformed the other markets for the month.