Occupancy is on the rise at U.S. hotels but rates were flat in the second quarter and are still down for the year, according to data from Smith Travel Research.
Second-quarter occupancy increased 6.2%, to 60.7%; average daily rate was $97.87; and revenue per available room increased 6.2%, to $59.44.
Year-over-year results for the first half of the year were mixed, with occupancy up 4.4%, to 56.4 percent; average daily rate down 2%, to $97.18; and revenue per available room up 2.3%, to $54.80.
"First-half and second-quarter U.S. hotel industry performance demonstrated marked improvement from 2009, particularly on the demand (rooms sold) front," said Bobby Bowers, senior vice president at STR.
"Second-quarter room demand increased 8.7 percent — the industry’s largest quarterly demand increase since STR began tracking performance in 1987. ADR growth is slowly improving, primarily at the upper end, and we expect continued gradual improvement through the second half."
For the year, STR is forecasting RevPAR will grow 5%, mostly on occupancy gains.
In the first half of 2010, 23 of the top 25 markets experienced occupancy increases. Boston led the way, rising 14.8%, to 65.4%; followed by Detroit, which was up 11.2%, to 51.4%; and New Orleans, which saw an increase of 10.7%, to 66.7%.
Houston reported the largest occupancy decrease, with a drop of 4.6%, to 56.7%, followed by Norfolk-Virginia Beach, which posted a 2.9% decrease, to 49.6%.
New York posted the largest rate hike, with ADR rising 5.4%, to $209.42. Tampa-St. Petersburg reported the largest ADR decrease, a 10.7% drop, to $97.98.