US hotels seeing largest revenue growth in 6 months

The North American hotel industry is continuing to experience strong gains with hotels showing the largest growth in revenue in six months, according to new research from TravelClick.

Key highlights of its March North American Hospitality Review, which looks at group sales and individual reservations for hotel stays that are booked by March 2012 for the calendar year (January 2012-December 2012):

  • RevPar for hotels nationwide is tracking ahead 7.9%, based on 2012 reservations on the books compared to a year ago (the largest increase in six months)
  • Group business is driving occupancy
  • The second quarter at this point looks strong
  • A few markets performing above average in terms of occupancy include Charlotte, Tampa and Houston

In more detail, group committed occupancy (which is based on contracted group blocks) on the books through the end of 2012 is up 5.1% compared to the same time last year. Group ADR, based on group reservations, is showing a strong increase of 4.9% over the same time last year.

The transient segment is showing a 2.8% increase in occupancy and a 4.9% increase in ADR as compared to last year. Within this segment, business demand is up 2.3% with an ADR increase of 5%, while leisure demand is up 4.2% with an ADR increase of 4.8% compared to last year. 

Overall, committed occupancy (group and transient combined) is up 4.1% year-over-year. ADR is up 4.9%.

Committed occupancy is looking strong for the second quarter, up 5.4% over last year. ADR continues to strengthen, improving 7.7% over last year, based on reservations currently on the books for the quarter.