August 2014 RevPAR Up 9.4% in U.S.

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

Overall, in year-on-year results, the U.S. hotel industry’s occupancy was up 3.8% to 71.6%; ADR rose 5.4% to US$118.49; and RevPAR increased 9.4% to US$84.90.

“August saw the second-highest RevPAR growth this year, which was fueled by continued strong demand increases across the board,” said Jan Freitag, senior VP of strategic development at STR. “Demand increased 4.8%, or 5 million rooms, from August of last year and pushed year-to-date demand up 4.3%.

“Supply growth continued its slow and steady increase of 1.0% for the month,” Freitag added. “So far this year, U.S. hotel occupancy is 66.0%, the strongest performance in the last 17 years. Demand is driven by the increase in travelers on business and leisure trips as well as prolonged strength in the group segment. Group occupancy increased 2.9% for the month and 3.3% year to date. These strong demand increases put hoteliers firmly in the driver’s seat with regard to pricing power. Room rates increased 5.4% in August, the highest rate since January 2008.”

Among the top 25 markets, Atlanta, Georgia, reported the only double-digit occupancy increase, rising 11.3% to 70.7%. Oahu Island, Hawaii, fell 1.2% to 88.3%, posting the largest occupancy decrease.

Seven markets achieved double-digit ADR growth: Nashville, Tennessee (+12.7% to US$114.22); Seattle, Washington (+12.6% to US$163.83); San Francisco/San Mateo, California (+12.1% to US$229.10); Los Angeles/Long Beach, California (+11.1% to US$164.05); Denver, Colorado (+10.3% to US$116.90); Boston, Massachusetts (+10.0% to US$179.56); and Minneapolis/St. Paul, Minnesota-Wisconsin (+10.0% to US$113.90).

Four markets experienced RevPAR increases of more than 15.0%: Atlanta (+19.8% to US$66.13); Nashville (+17.9% to US$84.43); Tampa/St. Petersburg, Florida (+15.7% to US$62.35)  and New Orleans, Louisiana (+15.2% to US$64.03).

None of the top 25 markets recorded an ADR or RevPAR decrease during the month.