Hospitality Vision: U.S. Performance Review 2011
Following a lengthy downturn, the U.S. 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 U.S. for the first 11 months of 2010 improved 5.7 percent compared to the same period in 2009. As a result, revPAR which experienced a record 16.6 percent decline in 2009, rose 5.4 percent year-to-November 2010 according to Smith Travel Research.
In this edition of "Hospitality Vision: U.S. Performance Review", we review a selection of U.S. markets and examine how they have performed in 2010.
- RevPAR rose 11.8 percent 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 percent 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 percent 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 percent), average room rates ($228) and revPAR ($185) in the U.S. Overall, the city reported a 14 percent 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 percent compared to 2009.