U.S. Hotel Market Ends 2013 with Higher Marks
The U.S. hotel industry's performance improved in the fourth quarter of 2013, according to the latest report from STR Global.
The national occupancy rate increased 1.8 percent to 57.5 percent year-over-year, while average daily rates increased 3.3 percent to $110.19. The revenue per available room reached $63.36 after increasing 5.1 percent during the fourth quarter, compared to a year ago.
"Fourth quarter RevPAR growth of 5.1 percent was once again powered by ADR, but occupancy growth was the strongest of any quarter in 2013," said Bobby Bowers, senior VP of operations at STR.
Among the top 25 U.S. market, Denver, Colorado led in occupancy gains with an 8.4 percent increase to 64.5 percent, followed by Tampa-St. Petersburg, Florida (+7.5 percent to 59.5 percent), and Nashville, Tennessee (+7.1 percent to 65.0 percent).
On the other hand, Philadelphia, Pennsylvania-New Jersey, posted the largest occupancy decrease, falling 4.9 percent to 61.8 percent.
New Orleans, Louisiana reported the largest increase in ADR, reaching $152.35 after a 13.6 percent increase. The hotel market in Chicago, Illinois reported the largest decrease, dropping 1.4 percent to $130.54, STR reports.
Three markets experienced RevPAR increases of more than 15 percent during the quarter: Nashville (+16.7 percent to $69.73); New Orleans (+16.3 percent to $102.22); and San Francisco/San Mateo, California (+15.6 percent to $155.64).
Washington, D.C., posted the largest decrease in RevPAR, dropping 3.3 percent to $84.09.
A separate report from STR
earlier this month showed a 14.9 percent yearly increase in the U.S. hotel pipeline in December.