Business booms for US hotel sector

The US hotel sector enjoyed a record-breaking year in 2017 for average daily rates (ADR) and occupancy levels, according to the latest industry figures.

Hotel data analyst STR said that overall occupancy across the US reached 65.9 per cent – up by 0.9 percentage points on 2016, while ADR jumped by 2.1 per cent to $126.72. The figures were boosted by the impact of a series of hurricanes in Texas and Florida during the second half of the year.

The US industry also set a record for the number of total available room nights across the year at 1.87 billion with 1.23 billion of these room nights being sold during 2017.

STR added that the increase in demand for hotel rooms in the US, which went up by 2.7 per cent year-on-year, outpaced the rise in supply of new rooms of 1.8 per cent last year. This was despite 2017 seeing the highest growth in hotel rooms since 2009.

Amanda Hite, CEO of STR, said: “Late-year demand growth, which was no doubt boosted by post-hurricane business in Houston and several major Florida markets, pushed well past a healthy influx of new rooms entering the marketplace.

“That allowed the industry to end the year well above forecasted levels after seeing more modest rates of growth through the first half of 2017.

“Given the tax cut and the stronger GDP growth that is expected, US hotels are in solid position moving through the next year.”

Energy market hub Houston saw the highest year-on-year rise in occupancy (+7.1 per cent) – partly due to the impact of Hurricane Harvey when hotels benefited from more demand from displaced residents, relief workers and insurance adjustors following the storm.

Nashville had the largest increase in ADR in the US, up by 6.2 per cent, to $142.82 while New York City hotels had the highest occupancy (86.7 per cent) and average rate ($255.54).

 

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By |January 24th, 2018|Hotels|

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