STR: US hotel performance for May 2018
STR: US hotel performance for May 2018
20 JUNE 2018 7:26 AM

In May, U.S. hotels reported occupancy rose 0.7% year over year to 68.2%, ADR increased 2.6% to $129.90 and RevPAR rose 3.3% to $88.59.

HENDERSONVILLE, Tennessee—The U.S. hotel industry reported positive results in the three key performance metrics during May 2018, according to data from STR.

In a year-over-year comparison with May 2017, the industry posted the following:

  • Occupancy: +0.7% to 68.2%
  • Average daily rate (ADR): +2.6% to US$129.90
  • Revenue per available room (RevPAR): +3.3% to US$88.59

U.S. hotels have now posted 99 consecutive months of RevPAR growth year over year.

“Growth wasn’t as strong as the previous two months, but solid increases across the metrics delivered another month with record-breaking performance on both a monthly and annualized basis,” said Bobby Bowers, STR’s senior VP of operations. “We had seen ADR increases of more than 3% in March and April, so that same level of pricing power wasn’t there, but with demand accelerating and supply growth remaining moderate, the industry looks to be in great shape as we hit the busy summer season.”

Miami/Hialeah, Florida, registered the only double-digit increase in RevPAR (+10.3% to US$139.46), which was due primarily to the month’s second-largest jump in ADR (+7.0% to US$182.07).

San Francisco/San Mateo, California, posted the largest jump in ADR (+8.0% to US$235.47), which resulted in the second-highest lift in RevPAR (+8.3% to US$199.71).

Norfolk/Virginia Beach, Virginia, experienced the largest rise in occupancy (+5.1% to 69.1%).

Overall, 19 of the Top 25 Markets reported RevPAR growth.

Denver, Colorado, registered the steepest declines in each of the key performance metrics: occupancy (-7.8% to 75.0%), ADR (-2.8% to US$128.81) and RevPAR (-10.4% to US$96.67).

Boston, Massachusetts, posted the second-largest decreases in ADR (-2.0% to US$219.25) and RevPAR (-4.5% to US$173.59).

Seattle, Washington, reported the second-largest drop in occupancy (-4.4% to 78.7%).

Overall RevPAR growth in the Top 25 Markets (+2.7%) was lower than the growth seen in all other markets (+3.5%).

“Supply growth hasn’t been a major factor in the overall U.S. numbers, but there certainly are markets seeing a negative performance impact,” Bowers said. “Boston and Seattle were good examples of that in May with higher demand, but lower occupancy and ADR levels due to the number of new rooms coming online.”

Download STR's May 2018 U.S. hotel review.

North America Media Contacts:

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

Haley Luther
Communications Associate
+1 (615) 824-8664 ext. 3500

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