HENDERSONVILLE,
TENNESSEE - The U.S. hotel industry reported increases in all three
key performance metrics during the first quarter of 2013 in
year-over-year measurements, according to data from STR.
The industry’s occupancy increased 1.8 percent to 57.7 percent, its average daily rate rose 4.5 percent to US$108.31 and its revenue per available room was up 6.4 percent to US$62.47.
“The industry realized nearly 3.0-percent growth in demand as a record 250 million room nights were sold during the first quarter of 2013,” said Brad Garner, COO at STR. “RevPAR increased 6.4 percent, lifted by a solid 4.5-percent gain in ADR. Most impressively, the industry posted meaningful results despite a difficult Easter comparable, stubbornly low group demand and generally tougher demand comparables.
“We continue to be bullish on industry-wide performance in 2013. However, we will continue to monitor the potency of the sequester and air traffic controller furloughs and their impact on industry results,”Garner commented.
Among the Top 25 Markets, Dallas, Texas, rose 7.1 percent in occupancy to 63.6 percent, reporting the largest increase in that metric. New York, New York, followed with a 6.8-percent increase in occupancy to 78.2 percent. Norfolk-Virginia Beach, Virginia (-1.9 percent to 43.2 percent), and Philadelphia, Pennsylvania-New Jersey (-1.6 percent to 58.0 percent), posted the largest occupancy decreases.
Oahu Island, Hawaii (+18.3 percent to US$208.77), and Miami-Hialeah, Florida (+12.2 percent to US$223.71) achieved the only double-digit ADR increases for the quarter. None of the top markets experienced ADR decreases during the first quarter.
Eight markets experienced double-digit RevPAR increases: Oahu Island (+18.4 percent to US$180.05); Miami-Hialeah (+16.7 percent to US$192.38); New York (+12.9 percent to US$164.63); Houston, Texas (+12.6 percent to US$70.88); Dallas (+11.3 percent to US$58.65); New Orleans (+11.3 percent to US$113.18); Anaheim-Santa Ana, California (+10.5 percent to US$87.44); and Nashville, Tennessee (+10.0 percent to US$63.03). Philadelphia reported the only RevPAR decrease, falling 0.5 percent to US$66.24.
$10 billion in new hotel projects opened in 2012
Approximately $10 billion in new hotels opened in the U.S. during 2012, according to the debut issue of Hotel Development Almanac, a report from STR Analytics. While hotel industry fundamentals continued to improve in 2012, new developments are near their lowest level in the current cycle with only 420 hotels opening last year.
“With a limited amount of financing available for new developments, the volume of new rooms entering the market is negligible in most cities,” said Steve Hennis, director at STR Analytics. “However, with continued improvement in both the general hotel industry as well as the national economy, we are beginning to see the pace of new construction increase.”
Hennis noted more than 600 new hotels are slated to open in 2013.
Key findings from the 2013 Hotel Development Almanac:
The industry’s occupancy increased 1.8 percent to 57.7 percent, its average daily rate rose 4.5 percent to US$108.31 and its revenue per available room was up 6.4 percent to US$62.47.
“The industry realized nearly 3.0-percent growth in demand as a record 250 million room nights were sold during the first quarter of 2013,” said Brad Garner, COO at STR. “RevPAR increased 6.4 percent, lifted by a solid 4.5-percent gain in ADR. Most impressively, the industry posted meaningful results despite a difficult Easter comparable, stubbornly low group demand and generally tougher demand comparables.
“We continue to be bullish on industry-wide performance in 2013. However, we will continue to monitor the potency of the sequester and air traffic controller furloughs and their impact on industry results,”Garner commented.
Among the Top 25 Markets, Dallas, Texas, rose 7.1 percent in occupancy to 63.6 percent, reporting the largest increase in that metric. New York, New York, followed with a 6.8-percent increase in occupancy to 78.2 percent. Norfolk-Virginia Beach, Virginia (-1.9 percent to 43.2 percent), and Philadelphia, Pennsylvania-New Jersey (-1.6 percent to 58.0 percent), posted the largest occupancy decreases.
Oahu Island, Hawaii (+18.3 percent to US$208.77), and Miami-Hialeah, Florida (+12.2 percent to US$223.71) achieved the only double-digit ADR increases for the quarter. None of the top markets experienced ADR decreases during the first quarter.
Eight markets experienced double-digit RevPAR increases: Oahu Island (+18.4 percent to US$180.05); Miami-Hialeah (+16.7 percent to US$192.38); New York (+12.9 percent to US$164.63); Houston, Texas (+12.6 percent to US$70.88); Dallas (+11.3 percent to US$58.65); New Orleans (+11.3 percent to US$113.18); Anaheim-Santa Ana, California (+10.5 percent to US$87.44); and Nashville, Tennessee (+10.0 percent to US$63.03). Philadelphia reported the only RevPAR decrease, falling 0.5 percent to US$66.24.
$10 billion in new hotel projects opened in 2012
Approximately $10 billion in new hotels opened in the U.S. during 2012, according to the debut issue of Hotel Development Almanac, a report from STR Analytics. While hotel industry fundamentals continued to improve in 2012, new developments are near their lowest level in the current cycle with only 420 hotels opening last year.
“With a limited amount of financing available for new developments, the volume of new rooms entering the market is negligible in most cities,” said Steve Hennis, director at STR Analytics. “However, with continued improvement in both the general hotel industry as well as the national economy, we are beginning to see the pace of new construction increase.”
Hennis noted more than 600 new hotels are slated to open in 2013.
Key findings from the 2013 Hotel Development Almanac:
- The average cost to develop a new hotel project in 2012 was $164,000 per room.
- The majority of new hotels are in the Upscale and Upper Midscale segments, which accounted for approximately two-thirds of 2012 openings.
- The most active market tract for development in 2012 was North Dakota, which saw 23 new hotels open.
- The New York City market had the costliest developments last year, averaging $508,000 per room.
- Hampton Inn & Suites and Holiday Inn Express had the most U.S. hotel openings in 2012.
STR
Analytics also introduced a new metric to assist with the evaluation
of hotel projects. The Hotel Development Index is a ratio of the
average sale price per key from the STR Analytics’ Hotel
Transaction Almanac and the average development cost per key. This
metric provides a snapshot of the potential risk for a new project
based on location, property class, region and chain scale. A high
Hotel Development Index indicates a lower perceived project
risk.
The Hotel Development Almanac is an overview of historical trends in U.S. hotel projects and their development costs. It includes a complete list of all hotels that opened in 2012 as well as aggregate breakdowns by region, property class and location type for numerous key metrics. The Hotel Development Almanac combines information from STR’s Census and Pipeline databases to create a comprehensive hotel development report. The Hotel Development Almanac is produced on an annual basis.
Europe hotel results
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for March 2013, according to data compiled by STR Global.
During the first-quarter 2013, the region reported a 1.2-percent increase in occupancy to 58.1 percent, its average daily rate fell 1.1 percent, in euro terms, to EUR96.30 and its RevPAR rose 0.1 percent to EUR55.95.
“Early Easter impacted both March and first-quarter 2013 results”, said Elizabeth Winkle, managing director of STR Global. “The first quarter is not an indicator of how the rest of the year will play out, but a 0.1-percent RevPAR growth in euros does go along with the fact that we expect to see a quiet year. Southern Europe was the only sub-region that reported strong RevPAR increases, rising almost 5.0 percent, coming mostly from ADR growth and a lower starting point”.
Highlights from key market performers for March 2013 include (year-over-year comparisons, all currency in euros):
The Hotel Development Almanac is an overview of historical trends in U.S. hotel projects and their development costs. It includes a complete list of all hotels that opened in 2012 as well as aggregate breakdowns by region, property class and location type for numerous key metrics. The Hotel Development Almanac combines information from STR’s Census and Pipeline databases to create a comprehensive hotel development report. The Hotel Development Almanac is produced on an annual basis.
Europe hotel results
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for March 2013, according to data compiled by STR Global.
During the first-quarter 2013, the region reported a 1.2-percent increase in occupancy to 58.1 percent, its average daily rate fell 1.1 percent, in euro terms, to EUR96.30 and its RevPAR rose 0.1 percent to EUR55.95.
“Early Easter impacted both March and first-quarter 2013 results”, said Elizabeth Winkle, managing director of STR Global. “The first quarter is not an indicator of how the rest of the year will play out, but a 0.1-percent RevPAR growth in euros does go along with the fact that we expect to see a quiet year. Southern Europe was the only sub-region that reported strong RevPAR increases, rising almost 5.0 percent, coming mostly from ADR growth and a lower starting point”.
Highlights from key market performers for March 2013 include (year-over-year comparisons, all currency in euros):
- Bratislava, Slovakia, reported the largest occupancy increase, rising 20.2 percent to 50.1 percent. Budapest, Hungary, followed with a 14.8-percent increase to 58.5 percent.
- Athens, Greece, fell 19.0 percent in occupancy to 47.8 percent, posting the largest decrease in that metric.
- Three markets experienced ADR growth of more than 10 percent: Tel Aviv, Israel (+19.5 percent to EUR199.80); Frankfurt, Germany (+16.0 percent to EUR133.59); and Istanbul, Turkey (+10.5 percent to EUR144.94).
- Warsaw, Poland, fell 12.7 percent in ADR to EUR66.25, reporting the only double-digit decrease in that metric.
- Six markets achieved double-digit RevPAR increases: Tel Aviv (+17.1 percent to EUR146.25); Dublin, Ireland (+16.0 percent to EUR68.41); Bratislava (+13.2 percent to EUR30.78); Istanbul (+11.0 percent to EUR105.98); Edinburgh, United Kingdom (+10.8 percent to EUR60.33); and Budapest (+10.5 percent to EUR32.68).
- Athens fell 22.6 percent in RevPAR to EUR39.57, reporting the largest decrease in that metric.
