The average U.S. daily hotel rate in May increased by 4 percent year over year, and occupancy climbed 4.6 percent to 61.5 percent, STR reported. STR president Amanda Hite said the industry is getting nearer to the peak rate levels of 2008 and that rates should continue rising for the rest of the year.
“May’s gains and the steady ADR gains for the year are positive signs that hoteliers are starting to feel comfortable leveraging rates,” according to Hite.
None of the top 25 U.S. markets reported lower May rates. The largest increases were found in San Francisco (16.5 percent), Nashville (11.9 percent) and Chicago (10.5 percent).
In the Americas, overall occupancy grew by 4.5 percent, reaching 61.6 percent, and rates increased by 4.7 percent. Rates increased by 35.3 percent in São Paulo, 19 percent in Vancouver and 16 percent in Montreal.
Rates in Europe grew about 8 percent and occupancy by 5 percent, according to STR Global managing director Elizabeth Randall. The largest rate increases were in Düsseldorf (67.5 percent), Istanbul (32.6 percent), and Gothenburg, Sweden (31.4 percent). Düsseldorf’s rates were boosted by such large events as the Interpack trade fair and the Eurovision Song Contest, according to STR. Cities that reported large rate decreases included Birmingham, U.K. (24.9 percent) and Madrid (11.8 percent).
In the Asia/Pacific region, occupancy was down 0.2 percent to 64 percent, but rates were up 13.5 percent. The largest rate increases were in Hong Kong, up 28.7 percent, and Bangkok, up 15.2 percent, following government protests in 2010.
Amid political demonstrations and unrest in some areas, the average May rate in the Middle East/Africa region increased by 8.5 percent year over year despite a 12.5 percent dip in occupancy to 53.7 percent. Rates increased by 17.6 percent in Cape Town and by 11.3 percent in Riyadh. Rates fell by 22.3 percent in Abu Dhabi, by 11 percent in Amman and by 10.9 percent in Beirut.
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