Hotel Online Special Report

U.S. Hotel Industry Maintains Consistent Course 
Based on February '99 Statistics
/ Smith Travel Research
March 31, 1999 - Occupancy for the month of February as compared to February 1998 was flat at 61.2 percent while ADR was up 3.6 percent from its level of a year ago to $82.71.  RevPAR   (a key industry productivity measure) was also up 3.6 percent for the month. Helping keep the industry on a consistent course are signs of a slowdown in supply growth, 3.8 percent for the month, its lowest monthly level since late 1997. Room night demand also remained consistent at a strong 3.8 percent. 

Occupancy for the twelve months ending February 1999 was down slightly at .8 percent. Healthy increases in ADR and RevPAR, 4.1 percent and 3.2 percent respectively, continued over the twelve-month period. Supply growth at 4.0 percent out paced a 3.1 percent increase in demand. 

Occupancies in the Top 25 Markets remained strong.  Over half  of the  markets posted improvements from prior year levels. For those markets with declines in February occupancy, consideration should be made to the fact that Valentine's Day fell on a Sunday this year and on Saturday in 1998. A twenty-point occupancy decline on that day (this year over last year) was also due in part to the Saturday to Sunday shift of Valentine's day with the ability to generate incremental demand on Saturday being greater than that possible for Sunday. 

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 hotel owners.  The company also tracks lodging industry performance in Canada and Mexico and has just launched a worldwide program to obtain hotel performance data on a global basis with its alliance partner, PricewaterhouseCoopers.

Brad Garner, Smith Travel Research 
(615) 824-8664
Smith Travel Research
105 Music Village Blvd.
Hendersonville, TN 37075
615-824-3848 (fax)
Also See: Smith Travel Research Releases 1998 YTD Results for the U.S. Lodging Industry / Nov 1998 
Of the Twenty Five Largest Markets in the US - Only Six Recorded Gains in Occupancy 
During 1998 - Year End 1998 US Lodging Idustry Results / Jan 1999 

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