Hotel Occupancy Remains Strong As Revenues Continue To Lag In Q3
U.S. hotel performance was strong in the third quarter as hotel occupancy, room rates and revenues increased year-over-year.
Nationwide occupancy jumped 0.5% to 71.4%, while the average daily rate and revenue per available room experienced increases of 1.4% and 1.9%, respectively. ADR is now sitting at $129.12 while RevPAR is at $92.20.
Though there was moderate growth across all three metrics last quarter, RevPAR remains a weak link in the sector, growing at a snail's pace when compared to historic numbers.
Part of the sector's sluggish growth is a result of the massive wave of new supply hitting the market.
An estimated 585,248 rooms in 4,886 hotels were under contract as of September, up 6.6% compared to the same time last year.
Houston had some of the healthiest growth overall with an 11.8% increase in occupancy and a 16.4% increase in RevPAR. It was also one of five markets to report more than 15,000 rooms under contract in the month of September.
Continuing its positive growth after strong increases in the second quarter, Orlando, Florida, also experienced some of the highest RevPAR progress along with Nashville, Tennessee, and Detroit.
In contrast, Philadelphia-New Jersey had the largest decline in all three key performance metrics during the quarter.