by Michael J. Shapiro | June 21, 2018
For more than eight years, the U.S. hotel industry has enjoyed continuous growth in revenue per available room. The unprecedented wave contines with May's hotel performance report from lodging-data provider STR, which notes RevPAR was up year-over-year for the 99th straight month, climbing by 3.3 percent to $88.59. The average daily rate increase of 2.6 percent wasn't as robust as has been seen recently, but STR does not see this as cause for worry.

"Growth wasn't as strong as the previous two months, but solid increases across the metrics delivered another month with record-breaking performance on both a monthly and annualized basis," said Bobby Bowers, STR's senior vice president of operations. "We had seen ADR increases of more than 3 percent in March and April, so that same level of pricing power wasn't there, but with demand accelerating and supply growth remaining moderate, the industry looks to be in great shape as we hit the busy summer season."
Occupancy continued its slow climb, bumping up 0.7 percent to 68.2 percent.
Business was particularly good for hotels in the Miami/Hialeah and San Francisco/San Mateo markets. Miami experienced the only double-digit jump in RevPAR, climbing by 10.3 percent to $139.46, thanks in large part to a major ADR jump of 7 percent, to $182.07. ADR growth was even more robust in the San Francisco area, climbing by an impressive 8 percent to $235.47. That led to 8.3 percent RevPAR growth in that market.
A full 19 of the Top 25 Markets reported RevPAR growth for the month, although the rate (2.7 percent) was lower than the average growth in all other markets (3.5 percent). Among the few Top 25 destinations that saw RevPAR drops were Denver (down 10.4 percent) and Boston (down 4.5 percent).
Supply growth, which hasn't been a significant factor in the overall U.S. numbers, played a role in Boston's drop, where demand increased but occupancy, ADR and RevPAR all fell. New room supply effects were similarly felt in Seattle, which recorded an occupancy decrease of 4.4 percent.