HENDERSONVILLE, Tenn. -- Despite a decline in occupancy, the U.S.
hotel industry showed strong increases in revenue per available
room (RevPAR) and average daily rates during the first quarter of
2000, according to Smith Travel Research, a hospitality research
firm based here.
Although occupancy dropped 0.2 percentage points to 59.1%
compared with first-quarter 1999, average rates climbed 3.6% to
more than $85. RevPAR rose 3.4% to $50.32 in the quarter.
The firm also indicated that the slowdown of development
continues, as room supply grew only 3.6% in the quarter, compared
with a 4.2% growth rate in the first quarter of 1999. That
represents the lowest first-quarter growth rate since 1997.
Demand dropped slightly, from 3.5% growth to an increase of
3.4%, but the firm projects that demand will pick up during the
year, boosting occupancy levels and increasing room rates.