The hotel industry is continuing to show strong growth in the business, leisure and group travel segments, according to TravelClick’s October 2011 North American Hospitality Review.
The North American Hospitality Review is based on actual hotel bookings for the period Oct. 1, 2011 through Sept. 30, 2012.
For the next twelve months, committed occupancy is up 4.8 percent year-over-year, average daily rate (ADR) is up 4.0 percent, and revenue per available room (RevPAR), a top-line indicator, is tracking ahead by 6.5 percent.
“While there is much uncertainty regarding where the overall economy is headed, hotel industry performance over the remainder of 2011 and heading into 2012 continues to look strong,” said Tim Hart, executive vice president, business intelligence, TravelClick.
“TravelClick’s forward-looking demand data reveals that RevPAR for the fourth quarter is tracking ahead of last year by 6.2 percent, based on reservations on the books. This improving performance is driven by both stronger occupancy and improved ADR," Hart said.
Fourth Quarter 2011 (Oct. 2011 – Dec. 2011)
In Q4 2011, ADR is up 4.1 percent compared to last year and will be the primary driver of RevPAR for the third consecutive quarter. Data from the September 2011 NAHR revealed a modest 0.8 percent increase in occupancy, however, new data from the October 2011 NAHR reveals that occupancy is now up 3.6 percent, year-over-year. This increase in demand is driven by an improvement in booking pace during Q3 2011.
Markets that show above average occupancy growth in the fourth quarter are Detroit (21.9 percent), Philadelphia (11.2 percent) and Miami (9.2 percent). Markets showing below average growth are Atlanta (-8.7 percent), Denver (-7.6 percent) and Orlando (-2.8 percent).
First Quarter 2012 (January 2012 – March 2012)
According to the report, demand in the first quarter of 2012 is strong, with pace – room nights added over the past month – up 15.3 percent and total committed occupancy up 2.4 percent compared to last year. Group blocks are showing a 2.0 percent increase compared to 2011, with group pace up a strong 18.7 percent.
Markets that show strong occupancy growth in the first quarter of 2012 are Indianapolis (37.7 percent), Detroit (26.3 percent) and Chicago (25.6 percent). Markets showing negative occupancy growth are Dallas (-23.1 percent), Tampa (-14.5 percent) and Denver (-12.4 percent).