U.S. Hotels Report Record Occupancy for May
The 67.5 percent occupancy enjoyed by U.S. hotels last month broke the May occupancy record, according to lodging-data provider STR. "Demand broke an unprecedented 104 million room nights," added Jan Freitag, STR's senior VP of strategic development. "Annualized occupancy is still at 65 percent, so all indicators are again at record levels on an annual basis." The May occupancy represented a 0.8 percent year-over-year increase, while the average daily rate of $120.64 was up by 5 percent over last May. Revenue per available room was up by 5.9 percent year-over-year, to $81.43. With that, RevPAR has increased for 63 consecutive months.
Leading the top 25 markets in all metrics was Denver, which enjoyed a 6.1 percent occupancy increase, to 80.6 percent. The city's average daily rate skyrocketed by 15 percent, to $123.86, and RevPAR was up by 22 percent. Double-digit average rate increases also were posted in New Orleans (up by 12.5 percent, to $162.09), Nashville (up by 11.5 percent, to $128.42), and Chicago (up by 11.4 percent, to $163.53).
The only two cities to weather decreases in all three measurements were Houston and New York City. Houston took the biggest dip, with occupancy down 6 percent to 71.4 percent, average daily rate falling 2.5 percent to $121.40 and RevPAR dipping 8.3 percent. New York saw a 1.9 percent occupancy decrease to 89.4 percent, an average daily rate drop of 0.9 percent to $281.05 and a RevPAR slide of 2.2 percent.