The average April U.S. hotel daily rate increased slightly year over year, as did revenue per available room and occupancy rate, according to hotel analytics firm STR. It was the first such year-over-year monthly increase in occupancy in at least a year.
U.S. ADR in April increased 0.8 percent year over year to $157.31, while RevPAR jumped 2 percent to $102.51, according to STR.
U.S. occupancy increased 1.2 percent year over year to 65.2 percent, the first such increase since STR resumed providing year-over-year comparisons in April 2023.
STR’s top 25 markets “showed higher occupancy and ADR than all other markets,” according to the company.
STR in other statements has noted what it called a “bifurcated” U.S. hotel market, with lower hotel tiers hurt by decreased demand from budget-minded travelers wary of inflation and economic conditions, with upper tiers boosted by seemingly strengthening business and group travel.
In fact, according to the company, STR’s top 25 markets during the week of May 5-11 posted their highest aggregate weekday occupancy—a metric correlated with business travel demand—since November 2019.
“At the same time, we can’t dismiss the travel headwinds that have taken the form of inflation, high interest rates, and rising debt,” according to STR.
New York City posted the highest April figures among STR’s top 25 markets in all three performance metrics: occupancy (84.4 percent, up 2.8 percent year over year), ADR ($298.98, up 2.6 percent) and RevPAR ($252.25, up 5.5 percent).
Detroit posted the lowest April occupancy among STR’s top 25 markets at 58.9 percent, followed by Minneapolis at 59.3 percent.
