Hotel & Motel Management - November 19, 2007 - (Page 14)

14 Trends & Stats H&MM November 19, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Industry on target to make the grade for 2007 ﬁfth consecutive year of RevPAR increases. More importantly, industry RevPAR IN THE will have increased more than 30 percent Third quarter in review in the past ﬁve years. Year-to-date RevPAR up Across the STR chain scales, SepOccupancy remains ﬂat tember year-to-date ADR and RevPAR Firmer demand in ﬁnal quarter growth was good across most segments. Midscale without food and beverage, up 4.4 percent, and economy, up 2.6 perBy Bobby Bowers cent, had the slowest ADR growth. OcH&MM cupancy basically was ﬂat across most Columnist chain scale groups, with upscale chains and midscale without F&B showing declines of about 1 percent versus prior year. The upscale and midscale without F&B segments also experienced the highest ow that the ﬁrst three quarters are in the books, it’s a good time year-to-date room supply growth rates, to review industry performance with 3.5 percent and 3.9 percent respecas we head into the home stretch of 2007. tively. These two segments have the most rooms currently under construction. By almost any measure, industry perforChecking on market performance, mance in the ﬁrst nine months of the year the top 10 RevPAR has been solid. growth markets all enSeptember year-toPerformance in the joyed year-to-date indate revenue per available room increased 5.7 ﬁrst nine months has creases of 11 percent or higher. RevPAR gains percent, driven exclusivebeen solid. in most of the top 10 ly by average daily rate were driven by low growth. Industry occuroom supply increaspancy reached 65 peres and big increases in cent, which was ﬂat verdemand and room revenue. On the ﬂip sus the same period in 2006. Room side, RevPAR decreases in the bottom 10 supply and room demand (rooms sold) both increased 1.2 percent, producing ﬂat markets primarily were driven by signiﬁcant demand declines. occupancy. Easier comps and ﬁrming demand in In the third quarter, RevPAR growth, fueled primarily by stronger demand, in- the year’s ﬁnal quarter hopefully will provide the cap to another good year. Based creased 6 percent versus third quarter on the ﬁrst nine months of 2007, the U.S. 2006. Third-quarter occupancy hit 68.6 lodging industry deﬁnitely has earned a percent—up 0.4 percent—while ADR grew by 5.6 percent, basically in line with passing grade. hmm@questex.com year-to-date growth. STR recently updated its 2007 fullyear industry RevPAR forecast to just Bobby Bowers is senior v.p. of operations for more than 6 percent. If this growth is Hendersonville, Tenn.-based Smith Travel achieved, it would mark the industry’s Research. Total U.S. key performance indicators percent change full year 2004-2006 and YTD September 2007 10 2004 5 1.2 0.5 0.1 0.6 2005 2006 2007 YTD 7.0 5.4 5.7 7.9 8.5 7.5 5.7 details 4.1 3.0 1.1 1.2 3.6 4.1 2.9 0.5 0 0 -5 Supply Demand Occupancy ADR RevPAR Total U.S. quarterly occupancy, ADR & RevPAR percent change 2006-2007 third quarter 12 8 4 0 -1.0 -1.4 -0.9 N 10.5 8.7 7.3 7.7 7.3 6.2 7.5 6.1 Occupancy 6.2 5.2 ADR RevPAR 5.4 5.8 5.6 6.0 2.9 0.9 0.3 0.4 -4 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 Chain scales occupancy / ADR percent change September 2007 YTD 10 6.7 5.7 7.1 6.1 4.4 2.6 5.9 5 0 0.1 -0.1 -1.0 -0.5 -0.9 0.2 0.6 Occupancy -5 Luxury Upperupscale Upscale ADR Midscale Midscale Economy Indepenw/F&B w/o F&B dent Top 10 markets RevPAR percent change September YTD 2007 Charlotte, N.C. Tulsa, Okla. Buffalo Denver San Jose, N.M. New York Pittsburgh Austin, Texas Portland, Ore. Salt Lake City U.S. 0 5 16.0 15.7 14.4 12.9 12.8 12.6 12.5 12.2 11.5 11.3 5.7 Total U.S. RevPAR percent change 2002-2007 projected 10 7.9 8.5 7.7 6.2 5 0.5 0 -2.7 -5 10 15 20 2002 2003 2004 2005 2006 2007P © 2007 Smith Travel Research http://HotelMotel.com http://www.HotelMotel.com/digital_edition

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Hotel & Motel Management - November 19, 2007 Contents Torrid Hotel Sales Pace Persists Boykin Takes Steps to Regain Foothold Best Western Sets 10-year Plan Perspective At Your Risk HotelWorld Update Sales Clinic Events Trends & Stats Charting H&MM's Top Lodging Design Firms Fitness Equipment Supplier News PMS Software Provides One-Click Solutions High-Quality Linens Require Higher-Quality Cleaning Despite Slow Market, Condo Hotels Thrive Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - November 19, 2007

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