Hotels in US Report Positive OR, ADR and RevPAR for October 2014

According to data compiled by STR, the U.S. hotel industry reported positive results in the three key performance metrics during October 2014.

Overall, in year-on-year results, occupancy rates were up 5.3% to 68.0%; ADR rose 4.6% to US$118.87; and RevPAR increased 10.1% to US$80.81.

“Room demand grew 6.3% in October, the largest monthly growth reported since December 2010,” said Jan Freitag, senior VP of strategic development at STR. “The industry sold 104 million room nights in October, something that has never happened in October. We broke the 100-million room night mark for the fifth time this year. Occupancy this month ended at 68.0%, which marks the seventh month this year that occupancy was above 65.0%. The last time we recorded numbers like these was in the mid-90s. With occupancy on that level, pricing power for hoteliers continues, as ADR was up 4.6% this month. RevPAR growth also broke records, as the growth this month (+10.1%) was the strongest October ever recorded.”

Fourteen of the Top 25 Markets reported double-digit RevPAR growth. Nashville, Tennessee, achieved the largest RevPAR growth, rising 23.4% to US$101.21. Four other markets reported RevPAR increases of more than 15.0%: Denver, Colorado (+20.5% to US$99.04); Orlando, Florida (+17.6% to US$78.95); Tampa/St. Petersburg, Florida (+16.4% to US$65.37); and Detroit, Michigan (+16.2% to US$64.58). Minneapolis/St. Paul, Minnesota-Wisconsin, posted the only RevPAR decrease, falling 4.0% to US$77.76.

All of the top markets recorded ADR increases. Nashville (+13.9% to US$126.34) led the gains, followed by Denver (+12.4% to US$123.03) and San Francisco/San Mateo, California (+12.3% to US$244.24).

Washington, D.C. (+10.5% to 74.6%), and Orlando (+10.1% to 73.6%) experienced the largest occupancy increases. Minneapolis/St. Paul fell 7.0% to 69.4% in occupancy, reporting the largest decrease in that metric.