Occupancy and rate in largest markets reflect improvement in business travel and groups >>
The US hotel industry saw January revenue per available room (RevPAR) at 10.4% above the same month in 2019 ($75.01), according to research from STR.
Other January results for the month included occupancy at 52.8% (down 3% from 2019) and average daily rate (ADR) at $142.14 (up 13.8%).
Markets with the lowest occupancy for the month included Chicago (42.7%) and Minneapolis (43.3%). San Francisco reported the steepest decline in occupancy when compared with 2019 (down 25.4%).
Reflecting continued improvement in business travel and groups, STR’s Top 25 Markets showed higher occupancy and ADR than all other markets.
In its first Hospitality Industry Sentiment survey, published last week, STR found that labor-related issues and energy/utility costs were among the top challenges on the minds of global hotel and travel industry professionals, while leisure demand and increased guest spending were seen as the biggest strengths.
Brianna Doyle, research analyst, said that while respondents around the globe cited similar challenges, professionals in North America said labor supply and costs topped their lists. The survey group, she said, also expressed trepidation for the overall economy, including recessionary headwinds, interest rates, inflation and depreciation of the US dollar, as well as limited flight availability and higher airfares.
Over a third of respondents, said Doyle, noted “bleisure” travel as a positive dynamic for their business. Other notable boosts included the chance to perform property renovations, lifts in hotel room rates and the possibility of travel price inflation easing in 2023. In addition to these challenges and strengths, a third of respondents expect to meet or surpass 2019 hotel occupancy levels in the first quarter of 2023, while 46% anticipate achieving that goal by the end of the year.
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