Hotels See ADR Rising Less Than 2 Percent for First Time Since 2011
The 12-month moving average for average daily rate (ADR) for US hotels was below 2 percent (1.9 percent) for the first time since early 2011, according to the April report from STR, the hotel data company. The report sees supply growth as at least partly to blame. Still, the industry continued toward a record-breaking length of expansion in April with occupancy rising 0.3 percent to 68 percent, ADR rising 0.9 percent to $131.85 and revenue per available room (RevPAR) up 1.2 percent to $89.97. The industry has now posted year-over-year RevPAR growth for 109 of the past 110 months. The longest overall expansion cycle in industry history lasted 112 months from December 1991 through March 2001. Among the top 25 markets, Minneapolis/St. Paul registered the largest jump in RevPAR (up 17.1 percent to $91.67), driven by the largest increase in ADR (up 15.1 percent to $134.86).