As supply continues to increase and widen its lead over demand, the U.S. hotel industry reported continued occupancy declines, as occupancy fell 0.4% in August. Jan Freitag, SVP of lodging insights at STR, HNN’s parent company, gives his take on how the chain scales performed, which markets show above-average supply growth and more.

1. ONE
TWO
THREE
FOUR
Eleven major markets report supply increas-
es above 2.2%. Houston leads the way at
6.2%, followed by New York (+4.5%) and
Miami/Hialeah, Florida (+4.4%).
All chain scales reported occupancy
declines, but positive ADR gains. But one
positive takeaway is the top four chain
scales (upper midscale and higher) all
reported occupancies above 70%.
During August, year-to-date RevPAR
came in at 2.9%, which is the lowest
year-to-date growth since 2009.
There are no signs of an end to
slowing growth, either.
Across the board, group occupancy
is down, including a 1.5% decline
across the U.S. and 1.7% decrease
in the upper-upscale segment.
Transient occupancy is only
slightly up at 0.7% growth.
FIVE
As supply continues to increase and widen its lead over demand, the U.S. hotel industry
reported continued occupancy declines, as occupancy fell 0.4% in August. Jan Freitag,
SVP of lodging insights at STR, HNN’s parent company, gives his take on how the chain
scales performed, which markets show above-average supply growth and more.
August was the sixth month in 2016
that occupancy declined. The culprit?
Supply growth increased by 1.7%—which
is up from 1.5% in July—and August
demand increased by 1.3%.
U.S . AUGUS T
(-0.4%)
© 2016 STR, Inc. All Rights Reserved.
illustrations: cory mizer
Source: STR, Inc.
YTD RevPAR
growth fell
below