US posts best quarterly ADR gain since Q1 2008

In the second quarter of 2012, the U.S. hotel industry’s occupancy increased 3.1% to 65.1%, average daily rate rose 4.7% to US$106.41 and RevPAR was up 7.9% to US$69.32.

“The U.S. hotel industry continued to rebound and posted a healthy second-quarter performance,” said Bobby Bowers, senior VP of operations at STR. “RevPAR increased 7.9%, fueled primarily by ADR growth of 4.7%—the best quarterly ADR gain since first quarter 2008. RevPAR has now moved higher in nine consecutive quarters. Second quarter demand grew 3.5% and supply inched ahead 0.4%, pushing occupancy up 3.1%. We anticipate a continuation of these trends in the second half, though probably at a somewhat slower pace.”

Among the top 25 markets, Houston, Texas (9.3% to 68.6%), and St. Louis, Missouri-Illinois (9.3% to 69.5%), reported the largest occupancy increases. Minneapolis-St. Paul, Minnesota-Wisconsin, fell 0.9% in occupancy to 67.3%, posting the largest decrease in that metric.

Two markets experienced ADR increases of more than 10%: San Francisco/San Mateo, California (11.9% to US$166.23), and Oahu Island, Hawaii (10.1% to US$176.71). Washington, D.C., ended the quarter virtually flat in ADR with a 0.1% decrease to US$153.96.

Nine of the top 25 markets achieved double-digit RevPAR increases in the second quarter. Oahu Island led the increases with an 18.4% rise to US$144.54, followed by San Francisco/San Mateo (+15% to US$138.63) and Los Angeles-Long Beach, California (14.4% to US$100.82). None of the top markets reported a RevPAR decrease for the quarter.