Average daily rates for U.S. hotels were up by 1.5 percent
year over year during August as occupancy and revenues posted more significant
increases, according to recent data from Smith Travel Research.
August occupancy reached 63.9 percent, up 6.4 percent from
August 2009 levels, according to STR. Revenue per available room was up 8.1
percent.
"This month, we started to see rate growth beginning to
improve and come back in upper-tier segments. However, the industry still has a
long way to go," STR president Mark Lomanno said in a statement. "Pricing
power is expected to come back in the major markets and expand broader to the
smaller markets."
Of those major markets, rates rose the most in New York,
where they increased 11.8 percent year over year. Nashville and Phoenix,
meanwhile, both saw rates decline by 6 percent and 4.4 percent, respectively.
Occupancy was up in all of the top markets, according to
STR. The largest increase was Detroit, up 20.3 percent, followed by New
Orleans, up 18.2 percent.