Hospitality Vision: US Performance Review 2011
Following a lengthy downturn, the US hotel industry entered a recovery in 2010, with gains continuing to strengthen as the year progressed. On the heels of a three year decline in occupancy and a two-year drop in revenue per available room (revPAR), occupancy in the US for the first 11 months of 2010 improved 5.7% compared to the same period in 2009. As a result, revPAR which experienced a record 16.6% decline in 2009, rose 5.4% year-to-November 2010 according to Smith Travel Research. In this edition of Hospitality Vision: US Performance Review, we review a selection of US markets and examine how they have performed in 2010.
- RevPAR rose 11.8% in November 2010, the strongest monthly performance since late 2005.
- Of the 27 cities profiled, all but four of them saw revPAR rise in 2010, while a further five reported revPAR growth in excess of 10% including Boston, Denver, Miami, New Orleans and New York.
- New Orleans was the clear winner in terms of revPAR growth as it soared 17.9% to $77. Following the oil spill in the Gulf during the spring of 2010, it is estimated that the gross revenue loss to the regional economy from 2011 – 2013 would be between $115 - $173 million. However, it appears that the demand for hotel rooms strengthened in 2010 due in part of an influx of cleanup workers into the area
- In terms of absolute performance, New York came out on top in 2010, with the highest occupancy (81.2%), average room rates ($228) and revPAR ($185) in the US. Overall, the city reported a 14% rise in revPAR year-to-November 2010. The Mayor’s office reported that over 48.7 million people visited New York City in 2010, up 6.8% compared to 2009.