Overall, the U.S. hotel industry’s occupancy rose 4.4% to 60.1%, its ADR was up 3.7% to US$101.64 and RevPAR increased 8.2% to US$61.06.
2011 was the first time since 2008 that the industry ended the year with occupancy of more than 60% and an ADR of more than US$100. However, for the month of December, the U.S. hotel industry’s occupancy rose 4.1% to only 47.6%, its average daily rate was up 3.4% to US$99.67 and its revenue per available room increased 7.6% to US$47.48.
For the year U.S. hotels reported a 0.6% increase in supply in 2011 and a 5% demand increase for the year. Demand has increased 5% or more only three times since 1987.
“2011 was a strong year for the U.S. hotel industry,” said Randy Smith, co-founder and chairman at STR. “Room-supply growth continued to drift downward as room demand reached record levels during the year. Though occupancy and ADR were still below 2007 and 2008 levels, it was still encouraging to see the industry experience a solid rebound during a period of considerable economic difficulties.”
“In 2012 the hotel industry will face tough year-over-year comparisons, though we are still optimistic,” Smith continued. “With modest gains in occupancy and stronger increases in room rates, we expect RevPAR to increase about 4.3% in 2012.”
Among the Top 25 Markets, Detroit, Michigan, ended the year with the largest occupancy increase, up 10.2% to 59.8%, followed by Tampa-St. Petersburg, Florida, with a 9.7% increase to 60.5%. New Orleans, Louisiana, ended the year virtually flat with a 0.4% decrease to 64.2%.
Two markets ended the year with double-digit ADR increases: San Francisco/San Mateo up 13.9% to US$155.14 and Oahu Island, Hawaii up 10% to US$165.05. The only top markets to report ADR decreases in 2011 were Atlanta, which fell 0.4% to US$82.58 and Norfolk-Virginia Beach, Virginia, which fell 0.3% to US$84.24.
San Francisco/San Mateo achieved the largest RevPAR increase, rising 19.7% to US$122.54, followed by Nashville, up 14.8% to US$58.01 and Miami-Hialeah up 14.1% to US$115.65. None of the top markets reported RevPAR decreases for the year.
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