Global revenue per available room (RevPAR) on a “same store” basis showed its largest growth (14.2%) since the end of the first quarter for the week ending Oct. 11, according to STR. The increase was driven by an 11.3% jump in average daily rate (ADR). All the key countries and remaining regions reported RevPAR gains led by France (+43.9%) because of a fashion week finale in Paris. 

India, Japan, Germany, the Middle East/Africa region, Spain and Canada all saw double-digit RevPAR increases for the week.

According to an STR blog, the last two weeks have been “a nice ADR respite.” However, the research showed that with occupancy still on the decline despite increases in other travel indicators, it seems unlikely that ADR will continue to grow at or above the rate of inflation.

In the US, ADR rose at the rate of inflation for the second consecutive week, up 2.6% for the week ending Oct. 11. As a result, US RevPAR rose 0.6%, marking the industry’s first weekly increase since the end of August. Occupancy, however, fell for a 16th straight week, with the most recent decline (down 1.4 percentage points) more than half of what had been seen in the previous two weeks (down 2.5 percentage points).

The ADR gain was a surprise, according to STR, given the average increase of 0.2% in the previous 21 weeks (ending Sept. 27). Also, unlike the previous week, when the measure rose 2.7% due to a large conference in Las Vegas, the result was widespread. The Top 25 Markets increased 2.8% despite a loss in Las Vegas, and the remainder of the country was up 2.4%. 

The Top 25 ADR surge on Wednesday and Thursday (up 4.2%) was significant, but RevPAR over those two days increased just 1.7%, with a drag from Las Vegas. Excluding Las Vegas, RevPAR on those two days was up 5.5% on a 6.8% ADR gain. 

Group demand for the Top 25 Markets on Wednesday and Thursday was up 13.7% excluding Las Vegas, which was down.