Luxury segment continues to lead among price categories
The US hotel industry reported negative year-over-year comparisons for the week ending May 31, according to CoStar’s latest data. Among the findings:
- Occupancy: 61% (down 1.6%)
- Average daily rate (ADR): $151.48 (down 0.3%)
- Revenue per available room (RevPAR): $92.45 (down 1.9%)
Among the Top 25 markets, St. Louis saw the largest occupancy increase (up 11.1% to 64.5%). New York City (up 5.7% to $290.35) and Los Angeles (up 5.7% to $189.06) matched for the greatest ADR lift.
The steepest RevPAR declines were seen in New Orleans (down 30.2% to $73.59) and Dallas (down 21.5% to $67.25).
Weekly RevPAR declined across all price categories, except luxury. This was the eighth consecutive week that luxury RevPAR gains exceeded all other categories. Conversely, it was the fifth week in a row in which economy chain hotels saw the sharpest decline in RevPAR.
While the week was generally soft for groups because of the Monday holiday, group demand in luxury and upper upscale hotels advanced Sunday through Thursday (up 1.4%) before declining 3.5% on the weekend. As a result, group demand was down 0.5% for the week.
As often happens, transient demand reflected an opposite pattern, with demand retreating Sunday through Thursday (down 1.1%) with a small increase on the weekend (up 0.4%), which resulted in a decrease of 0.6% for the entire week.
Global RevPAR, excluding the US, advanced 6.6% as ADR rose 7.5% and, while occupancy declined 0.5 percentage points, demand was up 0.3%. The picture changes considerably when China is removed from the mix. Excluding China, RevPAR increased 9.8%, with ADR up 8.4% and occupancy rising 0.9 percentage points.
