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
|