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Hendersonville, TN - April 30, 1999 - Occupancy for the month of March
1999 was 64.7 percent, an increase of 1.1 percent versus the same period
in 1998. Average daily rate (ADR) increased 3.7 percent to $82.78 for the
month and roorn revenue per available room (RevPAR), the combination of
occupancy and room rate, increased almost 5 percent to $53.58.
March room supply growth remained consistent with The first two months of 1999 at 3.9 percent Room demand for the month increased 5.1 percent, the highest monthly growth rate since June of 1998. Room revenue was up a healthy 9 percent, an increase from the 8.4 percent growth in March 1998. March demand growth in urban and resort locations continued to mirror a strong U.S. economy. Demand growth for urban accommodations, which comes primarily from business travelers, was up 6 percent while meetings and conventions, as well as leisure travelers, bolstered demand for resort locations by nearly 4 percent. Industry occupancy for the first quarter was 59.4 percent, off slightly from first quarter 1998; however, ADR and RevPAR remained strong during the quarter ADR increased 3.8 percent to $81.88 while RevPAR was up 3.5 percent to $48.65. First quarter room supply growth slowed slightly to 4 percent from the 4.1 percent growth reported in the first quarter of 1998. Demand grew 3.7 percent, the highest first quarter growth rate since 1990. Room revenue gained 7.5 percent in the quarter. '"The industry room supply and room demand relationship has begun to approach equilibrium", commented Mark Lomanno, President of STR. Lomanno also added. "With escalating demand growth and no immediate signs of accelerating supply growth, the industry may be poised to make positive strides in key performance areas". The following table contains operating results for the 25 largest hotel markets, excluding Las Vegas. |
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. |
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