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US hotels report strong June results

Posted on 23-07-2012.

HENDERSONVILLE, Tennessee—The U.S. hotel industry reported strong performance increases in June 2012, attributed to the calendar shift, according to data from STR, parent company of

The U.S. hotel industry’s occupancy rose 4.3% to 70.3%, its average daily rate was up 5% to $107.45 and its revenue per available room increased 9.5% to $75.49.

“June included two extra weekend days compared to June 2011, which helped with leisure demand during this busy travel season and boosted the month’s performance,” said Brad Garner, COO at STR. “Last year, July Fourth backed up to the last week of June, causing group travel to slow. However, with the Independence Day holiday on a Wednesday this year, group travel didn’t stall out during the last week in June. The industry’s performance has gained steadily throughout the first half of the year, and as we enter into the second half we continue to expect increases, although at a slower pace.”

Among the chain-scale segments, the midscale segment reported the largest occupancy increase, up 5% to 64.6%, followed by the luxury segment (+4.5% to 78.6%) and the independent segment (+4.5% to 66.9%).

The luxury segment posted the largest ADR increase, up 5.8% to $265.19, followed by the independent segment with a 5.4% increase to $107.25.

Two segments experienced double-digit RevPAR increases: the luxury segment (+10.5% to $208.52) and the independent segment (+10.1% to $71.70).

Among the top 25 markets, Houston reported the largest occupancy growth, increasing 11.7% to 69.1%, followed by St. Louis with a 10.2% increase to 77.1%. New Orleans reported the only occupancy decrease, falling 1.3% to 65.2%.

Three markets experienced double-digit ADR increases: San Francisco/San Mateo (+18.5% to $177.89); Oahu Island, Hawaii (+12.7% to $181.11); and Boston (+10.3% to $175.79). Washington, D.C., ended the month nearly flat with a 0.8% decrease to $151.26, posting the only ADR decrease.

Five markets achieved RevPAR increases of 15% or more: San Francisco/San Mateo (+25.5% to $160.05); Oahu Island (+22.3% to $154.41); Los Angeles-Long Beach (+18.7% to $112.02); Houston (+16.7% to $63.11); and Anaheim-Santa Ana, California (+15% to $102.75). New Orleans fell slightly in RevPAR, down 0.8% to $75.71.

Year-to-date 2012, the U.S. hotel industry reported increases in all three key performance metrics. Its occupancy was up 3.4% to 61%, its ADR increased 4.4% to $105.13 and its RevPAR rose 8% to $64.12. (source =

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