Back To Press Releases

STR: U.S. hotel performance for June 2019

Comments 0

HENDERSONVILLE, Tennessee—The U.S. hotel industry reported mostly negative results in the three key performance metrics during June 2019, according to data from STR.

In a year-over-year comparison with June 2018, the industry posted the following:

  • Occupancy: -1.3% at 73.5%
  • Average daily rate (ADR): +0.9% to US$134.52
  • Revenue per available room (RevPAR): -0.4% to US$98.85

This was just the industry’s second month in the past 112 with a negative year-over-year RevPAR comparison. The other was September 2018, which was due mostly to difficult-to-match levels from the post-hurricane time period the previous year. The longest overall expansion cycle in industry history lasted 112 months from December 1991 through March 2001.

“We were going to see a flat-to-low growth month regardless, but having one less Friday than last June replaced with a Sunday created even more of a drag on RevPAR comparisons,” said Jan Freitag, STR’s senior VP of lodging insights. “The negative figure for the month does not mean the growth cycle has ended. In fact, the industry set a June demand record and achieved the second-highest June occupancy level all-time behind last year. However, healthy enough supply growth and a continued lack of pricing confidence continue to hinder the potential for any meaningful growth.

“Our latest forecast calls for RevPAR growth of 2.0% for 2019 as a whole and 1.9% in 2020. Of course with labor continuing to grow at a faster pace than revenue, there is not much good news for profit margins.”

Among the Top 25 Markets, Phoenix, Arizona, experienced the highest rise in occupancy (+4.2% to 65.7%) and the second-largest increase in ADR (+5.1% to US$98.12), which resulted in the largest jump in RevPAR (+9.5% to US$64.46).

Philadelphia, Pennsylvania-New Jersey, posted the largest lift in ADR (+7.0% to US$151.07).

Detroit, Michigan, saw the largest drop in occupancy (-6.7% to 72.6%).

Houston, Texas, registered the steepest decline in ADR (-4.0% to US$98.92).

Orlando, Florida, reported the largest decrease in RevPAR (-9.8% to US$94.18).  

“The major markets are the best representation of performance consistent with supply growth and little to no pricing confidence,” Freitag said. “As we’ve said, the most noticeable hit is in the select-service classes, where most of the new inventory is concentrated.”

A note to editors: All references to STR data and analysis should cite “STR” as the source. Please refrain from citing “STR, Inc.” “Smith Travel Research” or “STR Global” in sourcing.

Additional Performance Data
Are you a member of the media looking for performance data for a hotel market not included in this release? STR’s sample comprises more than 65,000 hotels and 8.8 million hotel rooms around the globe. Please refer to the contacts listed below for additional data requests.

About STR
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. For more information, please visit str.com.

North America Media Contacts:

Nick Minerd
Senior Director, Communications
nminerd@str.com
+1 (615) 824-8664 ext. 3305

Haley Luther
Communications Coordinator
hluther@str.com
+1 (615) 824-8664 ext. 3500

0 Comments