The average May U.S. hotel daily rate increased year over year, as did revenue per available room and occupancy rate, according to hotel analytics firm STR. It’s the second straight month occupancy has increased year over year after posting declines for nearly a year.
U.S. ADR in May increased 2.4 percent year over year to $160.40, according to STR, while occupancy increased 1.5 percent to 65.7 percent and RevPAR increased 4 percent to $105.46.
STR said its top 25 markets “showed higher occupancy and ADR than all other markets.”
STR in earlier statements assessing weekly U.S. hotel performance in May noted the RevPAR increase was driven primarily by strong group demand as well as strong midweek demand—a signal of solid business transient travel—particularly at upper chain scales.
The company earlier this month substantially lowered its 2024 U.S. hotel performance forecast, even with indications business travel remains durable, due to a weaker-then-expected first quarter and persistent inflation impairing lower-tier leisure demand.
For the second straight month, New York City in May posted the highest figures among STR’s top 25 markets in all three performance metrics: occupancy (up 5.8 percent year over year to 88.9 percent), ADR (up 6.3 percent to $339.25) and RevPAR (up 12.5 percent to $301.57).
Detroit posted the lowest May occupancy among STR’s top 25 markets at 61 percent, followed by Minneapolis at 61.5 percent.
