Edit ModuleShow Tags
Edit ModuleShow Tags

Hotel Boom Times Slowing Down


Published:

It’s certainly not lights out, but the U.S. hotel market is showing signs of its first major slowdown after an unprecedented, multi-year growth streak across all categories. According to STR Global, the U.S. hotel industry reported negative year-over-year results in three key performance metrics during the tail end of April.

Strictly focused on the week of April 21-27, 2019, STR reports overall occupancy was down 1.4 percent to 68.9 percent, which is still a very healthy number in light of all the new hotel construction in the previous decade. In addition, the average daily rate (ADR) also declined 1.4 percent, down to an average bill of $128.66, which of course is a reflection of the vast number of economy-focused rooms, which have also expanded across the board in recent years.

STR analysts attribute performance declines in many major markets to group business decreases on Easter Sunday and the Monday that followed. The corresponding days from 2018 were non-holiday dates, which certainly had an impact on the numbers.

Looking at the top 25 U.S. hotel markets, Norfolk/Virginia Beach, Virginia, registered the only double-digit jump in RevPAR—industry lingo for revenue per available room. Those Virginia numbers spiked 30.6 percent to an average of $87.61. This was due to the largest rise in occupancy, up 6.9 percent to 74.6 percent. Miami/Hialeah, Florida, came in second by posting the second-largest increases in ADR (+11.8 percent to $226.76) and RevPAR (+8.6 percent to $184.32).

Washington, D.C.-Maryland-Virginia, reported the steepest decrease in RevPAR (-20.3 percent to $122.03), primarily due to the largest decline in ADR (-13.2 percent to $161.35). The market registered the second-largest drop in occupancy (-8.1 percent to 75.6 percent). Detroit experienced the only double-digit decrease in occupancy (-10.5 percent to 70.9 percent). Chicago saw the second-steepest declines in ADR (-12.6 percent to $128.47) and RevPAR (-16.9 percent to $89.25).

Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags


Covers everything from good news to bad judgment

About This Blog

The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Tom KaiserTom Kaiser is senior editor of Franchise Times. He can be reached at 612.767.3209, or send story ideas to tkaiser@franchisetimes.com.
 
Beth EwenBeth Ewen is senior editor of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is restaurants editor at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Laura MichaelsLaura Michaels is editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 

Archives

Categories

Feed

Atom Feed Subscribe to the Franchise Times News Feed »

Recent Posts