U.S. Hotel Demand Continues to Grow
The United States hotel industry shows no signs of slowing, as year-over-year demand continues to set new records. According to a report released this week by Smith Travel Research, August 2014 demand over the same period in 2013 increased by 4.8 percent, exceeding the growth of July 2014, which grew by 4.7 percent over the same period in 2013. However, the absolute number of rooms sold in August was 2.8 million less than in July, largely in part due to a decline in meeting attendance. In August 2014, revenue per available room increased 9.4 percent, the second highest year-over-year growth for this year, and the highest since September 2011. In addition the average daily rate grew by 5.4 percent, the highest since January 2008. While group demand slipped in August to just below 6.5 million rooms, the ADR for group rooms increased by 4.1 percent, the highest increase to date for the current year.