Positive Changes In The Hotel Industry
The hotel research and benchmarking company STR released data showing that the hotel industry is on the upswing in recent weeks. Although some markets saw slight declines, across the board occupancy, average daily rates, and revenue per available room rose.
In late November, STR reported that in the United States hotel occupancy rose 5.5 percent in year over year measurements. This put occupancy up to 60.7 percent. Revenue per available room across the United States rose by 9.8 percent to $68.34 while the average daily rate increased by 4.1 percent to hit $112.52.
Of the top twenty-five hotel markets, nine saw the revenue per available room increase by 15 percent or more. Anaheim/Santa Ana hotels increased their revenue by 31.7 percent, bringing them to $95.78 per available room while Boston saw an increase of a 31.2 percent to get to $147.72. The other markets recording this type of increase were Washington DC, Atlanta, Phoenix, San Diego, Norfolk/Virginia Beach, and Orlando.
Boston and Anaheim/Santa Ana also saw the highest increase in their average daily rates, with Boston increasing 18.5 percent to $186.75 and Anaheim/Santa Ana up 14.2 percent to $131.33.
San Francisco/San Mateo saw the biggest decreases in both the average daily rate and revenue per available room, with a drop of 20.9 percent to hit $187.12 in the former and a decrease of 23.9 percent to hit $153.21 in the latter.
If you are a hotel owner, these statistics should merely be indicators of success, not rules to dictate your profit. Have you thought about using hotel construction to maximize your revenue in the New Year? Consider a remodel to improve your guest experience, rapport in your community, and financial health. Contact Parkwest General Contractors for all of your commercial and hospitality remodeling construction needs.
