US hotel performance declined from the previous week but showed mostly positive comparisons year over year, according to CoStar’s latest data through Aug. 12. CoStar is a provider of online real estate marketplaces, information and analytics.
Results for the week of Aug. 6-12 included (percentage change from comparable week in 2022):
Occupancy: 68.3% (flat)
Average daily rate (ADR): $156.47 (up 2%)
Revenue per available room (RevPAR): $106.89 (up 2%)
According to data insights from STR, a division of CoStar, RevPAR for the Top 25 Markets, usually an indicator of business travel strength, increased a healthy 5.4%, which was the second highest year-over-year gain this summer, fueled by an ADR increase of 3.1%. For the rest of the country, ADR grew 1.1%, but with occupancy decline, RevPAR was down 0.2% among that grouping.
Among the Top 25 Markets, Los Angeles saw the largest year-over-year growth in each of the key performance metrics: occupancy (up 3.5% to 82.6%), ADR (up 8.4% to $222.98) and RevPAR (up 23% to $184.16), helped by Taylor Swift’s Eras Tour.
New York City posted the second-highest performance increases: occupancy (up 7.3% to 83.6%), ADR (up 8.3% to $258.39) and RevPAR (up 16.3% to $216.06). St. Louis saw the steepest RevPAR decline (down 22.1% to $63.80).
Of note, outside the Top 25 Markets, Maui Island reported significant year-over-year declines in occupancy (down 22.6% to 57.1%) and RevPAR (down 21.7% to $389.92). According to STR, a division of CoStar, the next weeks will be challenging for the entire island, as displacement and recovery efforts upend a region that is renowned for and dependent on travel and hospitality.
