Hotel & Motel Management - December 10, 2007 - (Page 20)

20 Trends & Stats H&MM December 10, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Denver reports mile-high performance in 2007 IN THE details Denver top market RevPAR highest at 12.9 percent Supply low, demand high Occupancy and ADR boost RevPAR Denver — Key performance indicators percent change — Full year 2004-2006 and YTD September 2007 20 2004 15 10 5 0 -1.4 0.2 1.3 1.1 5.0 2.6 3.6 3.5 4.0 3.4 3.6 11.5 10.3 8.3 2005 2006 2007 YTD 15.5 11.9 12.9 By Bobby Bowers H&MM Columnist ased on September 2007 year-todate numbers, revenue per available room growth in Denver was tops among the Smith Travel Research top 25 markets at 12.9 percent. Quietly, Denver has put together some impressive performance numbers that hoteliers in most markets would love. As with many strong markets, room supply growth has been very low—basically ﬂat over the past three years. At the same time, demand (room nights sold) has increased signiﬁcantly, averaging more than 3.5-percent growth from 2004 to 2006. September year-to-date demand also was up 3.5 percent. The supply/demand relationship has pushed occupancy from 60.2 percent in 2004 to 64.5 percent in 2006—more than 7-percent growth. September YTD occupancy was up another 2.3 percent. Room rates also have increased significantly. Average daily rate has increased nearly 7 percent each year over the last three years (2004–2006). September year-to-date rates improved another 10 percent. All sectors of the Denver market have experienced good rate increases: Upper-upscale, upscale and midscale without food and beverage have enjoyed the best B YTD rate growth, at about 12 percent. Occupancy increases and ADR growth have pushed RevPAR up dramatically—more than 10-percent average annual growth from 2004 to 2006. As mentioned earlier, 2007 YTD RevPAR growth in Denver was the highest of the STR top 25 markets. Good growth was experienced across all geographic areas of Denver, particularly in the north, airport and Englewood market tracts. Weekday* performance has been particularly strong. September YTD occupancy premiums versus weekends improved from about 3 percentage points in 2005 to just less than 4 percentage points in 2007. Weekday ADR premiums grew from more than $11 in 2005 to more than $17 in 2007. These numbers suggest that business travel primarily drives RevPAR growth in the Denver market. Denver’s strong growth has not gone unnoticed by developers. There currently are more than 1,700 new hotel rooms under construction in the market—4.6 percent of Denver’s existing room supply. Most of these rooms are scheduled to open within the next 12 months, which could have an impact on the market’s RevPAR growth, particularly in the near term. Without question, Denver’s hotel industry performance has been stellar over the past few years. New development and a constantly changing economic environment will, no doubt, pose challenges to the market’s continued growth. We’ll stay tuned for the next chapter of Denver’s hotel performance story. hmm@questex.com * Weekdays = Sunday through Thursday Bobby Bowers is senior v.p. of operations for Hendersonville, Tenn.-based Smith Travel Research. 4.6 2.3 0.6 -5 Supply Demand Occupancy ADR RevPAR Denver — Weekday/weekend — September YTD occupancy 80% 70% 60% 50% 40% 30% 2005 2006 2007 Weekday Weekend 67.9% 62.6% 63.5% 69.3% 65.5% 65.7% Denver — Weekday/weekend — September YTD average daily rate $120 Weekday Weekend $104.17 $100 $84.22 $94.09 $86.52 $79.28 $73.06 $80 $60 2005 2006 2007 Denver lodging industry — Key statistics for 12 months ending September 2007 Denver — Chain scales occupancy percentage September 2007 YTD 80 75 70 65 60 55 50 45 40 Upperupscale Upscale Midscale w/F&B Midscale w/o F&B Economy Independent 72.5 69.9 67.0 66.5 65.7 64.5 % Change Hotels Rooms Occupancy ADR RevPar Room revenue 275 37,862 65.7% $97.75 $64.23 $875,000 0.9% 3.1% 10.8% 14.4% 15.4% © 2007 Smith Travel Research http://www.hotelmotel.com http://www.hotelmotel.com/digital_edition

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - December 10, 2007

Table of Contents News Wildfires test hotels' emergency plans LIIC roundtable: Capital available for hotel projects Departments Perspective Letters to the Editor At Your Risk Family Business Matters Sales Clinic On Finance Satisfaction Trends HotelWorld Update Events Trends & Stats Special Report H&MM's "year in review" tackles the top seven in 2007 Transactions Consumer Insight Travelers rank free breakfast high on must-have items Hot Products IH/M&RS Editors' Choice Award winners Construction Spending up, costs steady in construction Design Window treatments Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - December 10, 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.