Compared with 2014, the U.S. hotel industry’s 2015 occupancy was up 1.7% to 65.6%; its average daily rate rose 4.4% to US$120.01; and its revenue per available room increased 6.3% to US$78.67, according to STR Inc. The absolute values in the three key performance metrics were each the highest STR has ever benchmarked.
The U.S. hotel industry also set records for supply (more than 1.8 billion room nights) and demand (almost 1.2 billion room nights). In terms of percentage growth for the year, demand (+2.9%) outpaced supply (+1.1%).
“This past year was the strongest on record for the U.S. hotel industry,” said Amanda Hite, STR’s president and COO. “With the number of rooms sold nearing 1.2 billion, all-time highs were recorded across the key performance indicators. And while we expect demand growth to slow, we are forecasting another record year for the industry in 2016.”
Among the Top 25 Markets, Tampa/St. Petersburg, Florida, reported the largest increases in occupancy (+5.6% to 71.8%) and RevPAR (+13.8% to US$82.28). ADR in the market was up 7.7% to US$114.56.
Three additional markets experienced double-digit growth in RevPAR: Phoenix, Arizona (+12.8% to US$79.77); Nashville, Tennessee (+11.1% to US$93.11); and Dallas, Texas (+10.0% to US$69.81).
Only two markets reported a decrease in RevPAR for the year: Houston, Texas (-3.3% to US$74.42), and New York, New York (-1.7% to US$219.39).
Nashville posted the largest rise in ADR for the year, up 8.7% to US$126.67. Phoenix followed in ADR percentage change with an 8.0% increase to US$121.09.
New York was the only Top 25 Market to report a drop in ADR, down 1.6% to US$259.11.
Houston was the only market to see occupancy fall in year-over-year comparisons, down 4.8% to 68.5%.
Three markets reported absolute occupancy above 80% for the year: Oahu Island, Hawaii (85.3%); New York (84.7%) and San Francisco/San Mateo, California (+84.4%).
Absolute ADR and RevPAR in New York were the highest for any of the Top 25 Markets in 2015.