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STR: US Hotel Performance For February 2017

STR: US hotel performance for February 2017

By  HNN Newswire

HENDERSONVILLE, Tennessee—The U.S. hotel industry reported mixed results in the three key performance metrics during February 2017, according to data from STR.

In a year-over-year comparison with February 2016:
Occupancy: -0.5% to 61.2%
Average daily rate (ADR): +1.7% to US$123.24
Revenue per available room (RevPAR): +1.2% to US$75.37

February 2017 marked the industry’s 84th consecutive month with a year-over-year increase in RevPAR.
“The 1.2% increase in RevPAR was the lowest for the industry since the last time we had a RevPAR decrease way back in February of 2010,” said Jan Freitag, STR’s senior VP of lodging insights. “That was due mainly to the lowest ADR increase since October 2010. Occupancy performance fell in line with expectations as supply growth outpaced demand, but that supply growth also looks to be placing added pressure on hotelier pricing power.”

Among the Top 25 Markets, Super Bowl LI host, Houston, Texas, experienced the largest year-over-year increase in RevPAR (+18.2% to US$91.14). That growth was driven by a 20.8% rise in ADR to US$135.52 as occupancy for the month dipped 2.2% to 67.2%.
Seattle, Washington, (+10.9% to US$99.42), saw the month’s second-largest lift in RevPAR.
Norfolk/Virginia Beach, Virginia, recorded the largest increase in occupancy (+7.8% to 50.5%) and the only other double-digit rise in RevPAR (+10.8% to US$39.14).

Aside from Houston, no other market posted a double-digit increase in ADR. 
Miami/Hialeah, Florida, reported the steepest declines in ADR (-6.9% to US$231.98) and RevPAR (-7.4% to US$193.78). The market’s occupancy (-0.6% to 83.5%) was nearly flat.

Denver, Colorado, saw the largest decrease in occupancy (-5.8% to 62.4%).
“The top markets (RevPAR: +0.8%) underperformed the rest of the country (RevPAR: +1.2%) even with higher rate growth,” Freitag said. “The difference mostly lies with significantly higher supply growth in the larger markets and subsequent larger occupancy declines. Markets like Miami and Denver are perfect examples of that.”

View the U.S. hotel review for February 2017.