US hotel revenue per available room rose 3.2% year-over-year for the week ending May 2, according to STR data released by Goldman Sachs on Wednesday. The expansion in RevPAR reflected modest improvements in both occupancy and average daily rate.
Top-line drivers
Occupancy increased by 1.2% year-over-year, while average daily rate climbed 2.0%, together producing the 3.2% RevPAR gain. Luxury properties led the occupancy improvement with a 1.7% year-over-year rise, followed by Upper Midscale at 1.5%. On the pricing front, Luxury again topped the categories with a 2.7% year-over-year increase in ADR. Upper Midscale and Midscale properties each recorded 1.8% increases in ADR.
Performance across the largest metro markets
Looking at the top 25 markets, US RevPAR increased 2.9% year-over-year. Las Vegas delivered the strongest showing with a 29.0% year-over-year gain. Other leading metros included Tampa Bay with a 22.9% rise, Saint Louis at 20.0% and Houston also at 20.0%. On the downside, San Francisco posted the weakest performance among the major markets, with RevPAR declining 31.2% year-over-year.
Results by chain scale
Five of six chain-scale categories posted year-over-year RevPAR growth. Luxury led with a 4.5% increase. Upper Midscale rose 3.3%, Midscale advanced 2.7%, Upper Upscale increased 1.9% and Upscale gained 1.6%. Economy properties were approximately flat compared with the prior year.
Booking segment breakdown
By booking type, Transient RevPAR rose 5.3% year-over-year. Group business increased 2.6%, while Contract revenue grew 6.2% year-over-year.
Takeaway
The US hotel sector showed broad-based revenue improvement in early May, with gains in occupancy and ADR concentrated in higher-end properties. Performance varied materially by market and by chain scale, with a handful of metros posting very strong gains while at least one major market recorded a substantial decline. Booking-segment results were mixed, with Contract and Transient segments outpacing Group.