Thursday, January 1, 2009

Houston and St. Louis Only Hotel Bright Spots in Dark December Week

HENDERSONVILLE, TN—Houston and St. Louis were the only gainers among the top 25 hotel markets in the Dec. 21-27 week, according to the most recent analysis by Smith Travel Research of Hendersonville, TN and STR Global of London.

Houston’s occupancy rose 1.2 percent to 35.9 percent, its ADR increased 10.2 percent to US $78.86 and its RevPAR jumped 11.6 percent to US $28.34.
(Cosmopolitan Resort & Casino, Las Vegas, top right photo)

“Houston’s performance is largely attributed to the influx of first responders, insurance agents and construction workers following Hurricane Ike’s landfall in September,” points out Jeff Higley, (middle right photo) director of communications and editorial director in STR’s Digital Media department.
(Sheraton Safari Lake Buena Vista, FL,
middle left photo)

St. Louis saw year-over-year ADR growth for the week (+0.1 percent).

“The week’s results likely were skewed somewhat by the day on which Christmas fell,” notes Higley.

This year, Christmas fell on a Thursday, while in 2007 it fell on a Tuesday.

The U.S. hotel industry experienced steep declines in three key performance measurements during the week of Dec. 21-27.

In year-over-year measurements, the industry’s occupancy fell 16.4 percent to end the week at 35.8 percent (42.8 percent during the comparable week in 2007).

Average daily rate dropped 9.5 percent to finish the week at US$92.49 (US$102.22 in 2007). Revenue per available room for the week decreased 24.3 percent to finish at US$33.13 (US$43.78 in 2007).

Performances within the seven chain-scale segments were off across the board:

• Luxury segment: Occupancy -24.4 percent to 40.5 percent; ADR -14.5 percent to US$310.83; and RevPAR -35.4 percent to US$125.98.

• Upper Upscale segment: Occupancy -19.6 percent to 34.6 percent; ADR -11.6 percent to US$128.53; and RevPAR -28.9 percent to US$44.47.

• Upscale segment: Occupancy -15.0 percent to 34.9 percent; ADR -8.0 percent to US$95.46; and RevPAR -21.7 percent to US$33.27.

• Midscale with Food-and-Beverage segment: Occupancy -17.7 percent to 31.5 percent; ADR -4.1 percent to US $77.64; and RevPAR -21.1 percent to US $24.42.

• Midscale without Food-and-Beverage segment: Occupancy -16.0 percent to 34.6 percent; ADR -3.7 percent to US $78.07; and RevPAR -19.1 percent to US $27.00.
(New Orleans Marriott Hotel, bottom left photo)

• Economy segment: Occupancy -11.2 percent to 36.8 percent; ADR -3.3 percent to US $50.72; and RevPAR -14.1 percent to US $18.65.

• Independents segment: Occupancy -17.2 percent to 38.0 percent; ADR -10.0 percent to US $95.60; and RevPAR -25.5 percent to US $36.31.

“Many of the top 25 markets experienced difficult weeks,” says Higley:

• Three of the markets experienced occupancy rate drops of more than 20 percent: Phoenix, Arizona, -27.5 percent; San Diego, California, -24.4 percent; and Chicago, Illinois, -20.3 percent.

• Five of the markets watched ADR drops of more than 15 percent: Oahu Island, Hawaii, -17.3 percent; Miami-Hialeah, Florida, -17.0 percent; Phoenix, -16.0 percent; New York, New York, -15.3 percent; and Orlando, Florida, -15.2 percent.

• Three of the Top 25 Markets watched as RevPAR declined more than 30 percent for the week: Phoenix, -39.1 percent; San Diego, -33.5 percent; and Miami-Hialeah, -31.7 percent.

Media contact: Jeff Higley, Director of Communications/Editorial Director, Digital Media, jeff@smithtravelresearch.com, +1 (615) 824-8664 ext. 3318

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