STR: US hotel performance for Q3 2016
STR: US hotel performance for Q3 2016
24 OCTOBER 2016 7:45 AM

Compared with the third quarter in 2015, the U.S. hotel industry reported positive results in Q3 2016. Occupancy was flat at 71.1%, but ADR rose 3.4% to $127.19 and RevPAR increased 3.3% to $90.48.

HENDERSONVILLE, Tennessee—The U.S. hotel industry reported mostly positive results in the three key performance metrics for the third quarter of 2016, according to data from STR.

Compared with Q3 2015, the U.S. hotel industry’s occupancy was flat at 71.1%. However, average daily rate (ADR) rose 3.4% to US$127.19, and revenue per available room (RevPAR) grew 3.3% to US$90.48.

The flat occupancy performance came as industry supply (+1.6%) and demand (+1.6%) grew at the same pace.

“This was the slowest third quarter for RevPAR growth since 2009, but RevPAR did hit an all-time high in absolute value,” said Bobby Bowers, STR’s senior VP for operations. “Year-to-date supply growth is at 1.5%, which is the highest through the first nine months of a year since 2010. And even though we are still selling a record number of rooms, this slowing performance will be the new normal as rate is now the sole driver of RevPAR growth.”

Among the Top 25 Markets, Philadelphia-Pennsylvania-New Jersey, posted the largest rise in occupancy (+5.9% to 76.8%) as well as the only double-digit increases in ADR (+12.6% to US$143.26) and RevPAR (+19.2% to US$110.09).

“Philadelphia saw a big boost from the DNC (Democratic National Convention) in July, and the impact from the event spilled over into August,” Bowers said. “Year to date, Philadelphia has one of the higher RevPAR growth figures among the Top 25 Markets.”

The next highest RevPAR increases for Q3 were reported in Phoenix, Arizona (+9.4% to US$52.40); Los Angeles/Long Beach, California (+9.3% to US$156.73); and Nashville, Tennessee (+8.0% to US$104.13). Overall, 20 of the Top 25 Markets saw year-over-year RevPAR growth for the quarter.

Houston, Texas, reported the steepest declines across the three key performance metrics. Occupancy in the market fell 10.3% to 60.2%; ADR was down 5.8% to US$98.54; and RevPAR dropped 15.6% to US$59.36.

“Houston’s problems with oversupply and diminishing demand as a result of the oil crisis have been well-documented,” Bowers said. “Unfortunately, it is going to take a few years for that market to recover.”

No other Top 25 Market reported a double-digit decrease in any of the three metrics.

In absolute values, New York, New York, recorded the highest levels in each of the three metrics: occupancy (89.5%), ADR (US$265.25) and RevPAR (US$237.46).

Media Contacts:

Jeff Higley
VP, Digital Media & Communications
+1 (615) 824-8664 ext. 3318

Nick Minerd
Public Relations Manager
+1 (615) 824-8664 ext. 3305

The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editor-in-Chief Stephanie Ricca at

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.