The U.S. hotel industry reported negative results in three key measures during October 2019, according to data from STR.
In a year-over-year comparison with October 2018, occupancy was dipped 0.8% to 69%, average daily rate dropped 0.5% to $133.34, and revenue per available room declined 1.2% to $92.35.
This was the first time RevPAR declined at U.S. hotels in consecutive months since December 2009 and January 2010.
“We considered the three previous sub-0.5% monthly declines in this record-setting expansion cycle as blips. With October's RevPAR decrease of 1.2%, there's more evidence for a pronounced slowdown on the horizon,” said Carter Wilson, STR's senior VP of consulting and analytics. “As noted in our revised forecast, we're projecting RevPAR increases below 1% for 2019 and 2020. The industry has not been below 2.9% growth for a year since the recession.”
STR is projecting RevPAR increases below 1% for 2019 and 2020. The industry has not been below 2.9% growth for a year since the last recession.
Among the Top 25 Markets, Anaheim/Santa Ana, California, registered the largest jump in RevPAR (+6.1% to US$138.20).
Boston, Massachusetts, saw the steepest decline in RevPAR (-11.8% to US$191.12), mostly because of the largest drop in occupancy (-7.1% to 83.1
Overall, the Top 25 Markets (RevPAR: -2.4%) in aggregate have underperformed all other markets (RevPAR: -0.4%) in 12 of the past 13 months.