STR: US hotel performance for November 2016
STR: US hotel performance for November 2016
21 DECEMBER 2016 8:28 AM

In November 2016, the U.S. hotel industry reported a 2.5% occupancy increase to 60.7%, while ADR rose 3.4% to $119.71 and RevPAR jumped 5.9% to $72.68, according to data from STR.

HENDERSONVILLE, Tennessee—The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during November 2016, according to data from STR.

Compared with November 2015, occupancy increased 2.5% to 60.7%, and average daily rate (ADR) rose 3.4% to US$119.71. As a result, revenue per available room (RevPAR) grew 5.9% to US$72.68, marking the industry’s 81st consecutive month with a year-over-year increase in RevPAR.

The 60.7% occupancy level was the highest for any November in STR’s database, and the RevPAR increase was the largest for the industry since October 2015.

“November results were definitely stronger than expected, but the month will likely end up as an outlier,” said Brad Garner, STR’s senior VP for client relationships. “Part of the performance can be attributed to a calendar shift. This month included a Tuesday and Wednesday in comparison with a Sunday and Monday in 2015. Performance on those days in 2016 was quite a bit higher, which is to be expected as Sunday is historically the lowest performing day of the week.

“Moving forward, we still expect supply growth to outweigh demand growth, leaving ADR as the primary driver of RevPAR. That equation likely adds up to a performance growth slowdown for the industry—similar to what we have seen in previous months.”

Among the Top 25 Markets, Norfolk/Virginia Beach, Virginia, recorded the only double-digit increase in occupancy (+11.0% to 53.3%) and the largest increase in RevPAR (+14.0% to US$43.17). ADR in the market was up 2.6% to US$81.00.

Three additional markets reported double-digit growth in RevPAR for the month: Chicago, Illinois (+12.9% to US$107.24); Los Angeles/Long Beach, California (+12.6% to US$124.32); and Nashville, Tennessee (+11.0% to US$94.85).

Los Angeles/Long Beach posted the largest rise in ADR (+7.8% to US$164.67).

Houston, Texas, reported the steepest declines across the three key metrics. Occupancy in the market dropped 9.5% to 58.0%, ADR was down 6.1% to US$99.54 and RevPAR decreased 15.0% to US$57.69.

Miami/Hialeah, Florida, experienced the month’s second largest decrease in RevPAR (-9.9% to US$128.15).

“The Top 25 Markets (RevPAR +5.4%) didn’t perform as well as other markets (RevPAR +6.1%), mostly due to greater occupancy gains in those other markets,” Garner said. “That is to be expected due to group business shifts to markets outside of the Top 25 and to more new supply entering the larger markets.”

View the U.S. hotel review for November 2016 here.

North America 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

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