Market Report U.S.

Positive YOY Results for US Hotel Industry for February 2018

The U.S. hotel industry reported occupancy rose 1.2% to 61.7% during February, and a 2.3% ADR jump to $126.38 pushed RevPAR up 3.5% to $78.02 for the month.
Illuminated hotel sign
Positive YOY Results for US Hotel Industry for February 2018

The U.S. hotel industry reported positive results in the three key performance metrics during February 2018, according to data from STR.

In a year-over-year comparison with February 2017, the industry posted the following:

  • Occupancy: +1.2% to 61.7%
  • Average daily rate (ADR): +2.3% to US$126.38
  • Revenue per available room (RevPAR): +3.5% to US$78.02

“RevPAR has now increased year over year for 96 consecutive months, or eight years in a row,” said Jan Freitag, STR’s senior VP of lodging insights. “That is far longer than the upswing after 9/11 (56 months), but not yet as long as the positive RevPAR run in the mid-90s (112 months). RevPAR growth for February 2018 specifically was a bit stronger than expected, driven by both healthy occupancy and ADR gains. ADR has now risen at or above 2.3% in four of the last five months.”

Among the Top 25 Markets, Super Bowl LII host Minneapolis/St. Paul, Minnesota, experienced the only double-digit rise in occupancy (+13.0% to 64.6%) and the largest increases in ADR (+47.0% to US$158.26) and RevPAR (+66.0% to US$102.29)

Miami/Hialeah, Florida, posted the only other double-digit lift in ADR (+12.1% to US$260.17), which drove the month’s second-highest rise in RevPAR (+17.2% to US$226.19).

Philadelphia, Pennsylvania-New Jersey, reported the second-largest increase in occupancy (+8.1% to 63.1%), resulting in the third-largest jump in RevPAR (+12.2% to US$75.87).

Overall, 18 of the Top 25 Markets reported RevPAR growth.

San Francisco/San Mateo, California, reported the steepest decline in RevPAR (-15.9% to US$160.40), due primarily to the second-largest decreases in occupancy (-5.6% to 76.6%) and ADR (-10.9% to US$209.31).

Houston, Texas, last year’s Super Bowl host, reported the largest decrease in ADR (-17.9% to US$112.39), resulting in the second-largest drop in RevPAR (-14.0% to US$79.14).

Seattle, Washington, experienced the largest drop in occupancy (-7.5% to 67.6%).

“We saw the obvious Super Bowl performance spike in Minneapolis as well as the negative year-over-year comparison for Houston one year removed from its Super Bowl host year,” Freitag said. “At the same time, we saw further weakening of the post-hurricane impact in Texas, which is to be expected as FEMA spending in the state continues to decrease. Overall, RevPAR growth was the same (+3.4%) in the major markets as it was in all other markets. Growth in the non-Top 25 Markets was more driven by ADR gains.”

View monthly U.S. hotel performance review

STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.



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