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.