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STR U.S. Hotel Performance Review for February 2023

April 4, 2023

  • Occupancy: 60.0% (-2.8%)
    Average daily rate (ADR): US$152.01 (+17.7%)
    Revenue per available room (RevPAR): US$91.22 (+14.3%)

Key points

  • ADR increases over the last eight months are the highest levels of growth STR has ever benchmarked (excluding pandemic recovery months).
  • Occupancy levels are reverting to historical norms.
  • Group’s rapid recovery is underpinned by lower ADRs – both actual and growth level – relative to transient, suggesting a cost-efficient option for companies prioritizing group travel over transient.
  • Top 25 Market occupancy recovery continues to be leisure weekend-driven, as hotel costs in combination with rising airfare makes travel increasingly expensive for budget-conscious companies.
  • The number of rooms in construction increased year over year for the third consecutive month, suggesting that the U.S. has entered a new supply growth cycle with previously deferred projects moving forward.

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