The March U.S. hotel average daily rate increased slightly year over year while occupancy again declined, according to hotel analytics firm STR.
U.S. hotel occupancy in March was 63.7 percent, down 2.5 percent year over year, while the average daily rate increased 0.4 percent to $159.79. Revenue per available room declined 2.2 percent year over year to $101.81.
U.S. occupancy has declined year over year for several consecutive months. STR in a preliminary March report suggested the decline was due in part to weakening demand among budget-minded leisure travelers.
“The first quarter of the year has seen much lower RevPAR growth than anticipated,” STR noted. “It is likely that lower-to-middle income travelers are being squeezed out of travel due to the continued rise in prices, increased debt and servicing costs. This has led to the end of pent-up demand, which is not being offset by robust business and international travel.”
Higher-tier properties in the first quarter benefited from increasing demand for group travel, STR said.
Miami posted the highest figures among STR’s top 25 markets in all three performance metrics: occupancy (83.5 percent, up 2.3 percent year over year), ADR ($284.14, down 0.6 percent) and RevPAR ($237.25, up 1.6 percent).
STR’s top 25 markets “showed higher occupancy and ADR than all other markets,” according to the company.
