Hotel Online Special Report
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Smith Travel Research Releases 1998 YTD Results 
for the U.S. Lodging Industry
 
Hendersonville, TN - November 4, 1998 - Smith Travel Research (STR) announced third quarter and September 1998 year-to-date results for the U.S. Lodging industry today.

Occupancy for the month of September was 66.4 percent, up .5 percent from last year's 66.1 percent. ADR (average daily rate) and RevPAR (Revenue Per Available Room) posted modest increases of 3.2 percent and 3.8 percent respectively. While ADR and RevPAR growth was positive, both slowed from the growth rates of 6.7 percent and 5.3 percent reported in 1997.

Third quarter occupancy declined 1.3 percent from third quarter 1997 to 70.1 percent. ADR was up 3.7 percent from its 1997 level of $75.38. RevPAR reached $54.79, up 2.4 percent from 1997. Third quarter supply growth increased 3.8 percent in 1998 versus 3.4 percent growth same period 1997. Demand growth continued to lag supply and rose 2.5 percent in the quarter, slightly higher than its 1997 level of 2.1 percent.

The year-to-date results for September continued to follow patterns established earlier in the year. Occupancy was down slightly over 1 percent to 65.8 percent while ADR grew 4.5 percent ($78.63). RevPAR growth increased 3.6 percent to $51.78.

"Room supply growth continues to exceed demand increases by about one percentage point based on the most recent 12 month numbers," said Randy Smith, CEO of Smith Travel Research. "We expect these trends to continue for the balance of the year. In 1999, we think the supply/demand growth gap will widen slightly, resulting in slightly lower industry occupancy.

Smith Travel Research --- the leader in lodging industry tracking and analysis provides regular industry reporting to all major U.S. chains, many independent hotels and a variety of management companies and owner groups. The company also tracks lodging industry performance in Canada and Mexico.
 
 

Lodging Outlook Survey for September 1998
Operating Performance - September - Year to Date
Segment Occupancy Percent Average Room Rate Room Revenue Rooms Avail Rooms Sold
1998 1997 % CHG 1998 1997 % CHG % CHG % CHG
% CHG
United States
65.8 66.5 -1.1 78.63 75.22 4.5 7.6 3.9 2.9
Chain Affiliated 66.1 66.8 -1.0 78.77 75.51 4.3 9.9 6.5 5.4
Independents 65.3 65.8 -.8 78.33 74.63 5.0 2.7 -1.4 -2.2
Region
New England 66.7 65.6 1.7 91.68 86.68 5.8 9.9 2.2 3.9
Middle Atlantic 69.4 68.8 .9 103.65 97.42 6.4 9.5 2.1 2.9
South Atlantic 66.2 67.4 -1.8 77.37 74.05 4.5 7.1 4.3 2.5
East North Central 63.1 62.8 .5 72.59 69.53 4.4 10.0 4.8 5.4
East South Central 60.6 62.0 -2.3 57.44 56.40 1.8 5.0 5.5 3.1
West North Central 61.3 61.2 .2 60.22 58.13 3.6 8.5 4.7 4.8
West South Central 63.7 63.4 .5 67.71 64.97 4.2 9.9 5.0 5.4
Mountain 68.0 69.8 -2.6 74.03 72.52 2.1 3.8 4.4 1.7
Pacific 69.2 70.2 -1.4 92.56 86.92 6.5 7.0 1.9 .4
Price
Luxury 74.3 75.2 -1.2 138.83 132.61 4.7 5.8 2.3 1.1
Upscale 69.4 70.1 -1.0 92.11 88.66 3.9 8.0 4.9 4.0
Mid Price 66.0 67.0 -1.5 70.88 67.49 5.0 9.5 5.9 4.3
Economy 60.5 61.3 -1.3 53.71 51.57 4.1 6.5 3.6 2.2
Budget 61.6 61.3 .5 44.28 42.09 5.2 7.3 1.5 2.0
Location
Urban 70.4 70.8 -.6 119.32 112.35 6.2 10.0 4.1 3.5
Suburban 66.9 67.8 -1.3 75.65 72.14 4.9 10.0 6.4 4.9
Airport 71.3 72.3 -1.4 82.47 77.49 6.4 8.2 3.2 1.7
Highway 62.6 62.6 .0 58.09 55.65 4.4 6.4 2.0 1.9
Resort 70.0 71.6 -2.2 119.94 114.75 4.5 4.1 1.8 -.4
Source: "Lodging Outlook" Copyright 1998 Smith Travel Research
 
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Contact:
SMITH TRAVEL RESEARCH
105 Music Village Blvd.
Hendersonville, TN 37675
615-824-8664
615-824-3848 (fax)
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Also See:
First Half 1998 US Lodging Industry Results Released by Smith Travel Research / Aug 1998
U.S. Lodging Industry's 1997 Profits Much Higher Than Originally Thought / Smith Travel Research / July 1998 

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