by Michael J. Shapiro | December 20, 2017
For the continental United States, hotel-industry performance continues to surge in the aftermath of hurricanes Harvey and Irma, according to data from STR. National occupancy was up by 1.6 percent in November to 61.5 percent, which, in terms of room nights, is another industry high. Average daily rate grew by 2.3 percent to $122.64, and revenue per available room was up by 3.9 percent, year-over-year.
"Much like October, performance for November was stronger than expected due to residual business in hurricane-affected areas in Texas and Florida," noted Jan Freitag, STR's senior vice president of lodging analysis. "We saw another occupancy record, and ADR grew more than 2 percent for the second month in a row. When removing those two states from the equation, we saw muted growth that fell more in line with our forecasts for the year."
Houston hotels experienced both the largest occupancy jump (up by 26.5 percent, to 73.2 percent occupancy) and RevPAR, which skyrocketed by 40.1 percent to $80.74. November's second-highest RevPAR rise happend in San Francisco/San Mateo, which jumped by 15.6 percent to $183.34. That was driven by the month's highest ADR gain, a 17.5 percent increase to $237.81. Other double-digit RevPAR increases were reported in Orlando (up by 12.3 percent) and Miami/Hialeah (up by 10.8 percent).
Decreases in RevPAR were far less steep: Chicago experienced the biggest drop, down by 4.7 percent year-over-year, due primarily to the nation's biggest ADR drop, which fell by 3.6 percent to $150.76.
The numbers speak to what has been a surprisingly strong year for hotels. "The industry is on track to wrap up another record year, even as supply has grown at its strongest rate since 2009," said Freitag. "Just like last month, there was not much year-over-year growth in rooms under construction, which bodes well for the supply picture in the next few years."