In the first nine months of 2004, industry occupancy gained 3.6 percent to 62.7 percent versus same period prior year. Average room rate rose 3.7 percent to $86.41 and REVPAR was up 7.5 percent to $54.20.
Industry room supply increased 1.1 percent in the January – September period, down slightly from 1.3 percent growth in the comparable 2003 period. Industry demand (room nights sold) increased 4.8 percent September YTD compared to a prior year demand increase of 0.8 percent. Room revenue increased 8.7 percent in the first nine months of 2004 to $66 billion.
In the month of September 2004, occupancy gained 7.1 percent to 63.3 percent while room rate improved 3.8 percent to $85.52. September REVPAR rose 11.1 percent to $54.12. The September occupancy increase was the industry’s highest to date in 2004.
“Third quarter industry performance, particularly the month of September, was strong”, said Mark Lomanno, President of Smith Travel Research. “October is also shaping up to be a good month. If current trends hold, we anticipate full year 2004 industry REVPAR growth could be over 6 percent”, Lomanno added.
Smith Travel Research --- the leader in lodging industry tracking and analysis --- provides regular industry reporting to all major North American chains. The company also provides daily performance reporting through its DaySTAR program.
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