U.S. hotel revenue per available room (RevPAR) rose 3% last
year, slightly lower than the 3.2% growth in 2016, according to hotel data firm
STR.
Occupancy advanced 0.5 percentage points to 65.9%, while the
average daily rate rose 2.1% to almost $127 a night. Occupancy and rate rose even
though room inventory expanded 1.8% last year.
RevPAR in Hurricane Harvey-ravaged Houston rose more than
10% last year, as a 12% jump in room demand outpaced the city's 4.7% increase
in room supply.
Orlando and Tampa/St. Petersburg had the second- and
fourth-fastest demand growth rates among the 25 largest hotel markets, with
RevPAR increases of 10% and 5.5%, respectively. Detroit's 6% RevPAR growth rate
made the city the third-fastest-growing U.S. market in terms of hotel room
demand.
Minneapolis-St. Paul had last year's largest RevPAR drop, a 3.6%
decrease, as room rates and occupancy were hampered by a 3.5% increase in room
supply. Philadelphia, where year-earlier demand was bolstered by the 2016
Democratic National Convention, had a 2.7% decline in RevPAR.
The San Francisco/San Mateo market had a 2.4% decrease in
RevPAR, as demand was hurt by the closure of much of San Francisco's Moscone
Center convention facility for its expansion project.