Supply growth is challenging the pricing power
of U.S. hoteliers as it begins to outpace demand growth, according to STR.
February's 1.2 percent increase in revenue per available room was the softest
gain for the U.S. hotel industry since the last time RevPAR declined, in
February 2010. Among the 25 markets with the most hotel rooms, Super Bowl LI gave
Houston the largest increase in average daily rate, 20.8 percent to $135.52,
even as occupancy fell 2.2 percent to 67.2 percent. Miami/Hialeah saw the
sharpest ADR decline, 6.9 percent to $231.98. Norfolk/Virginia Beach posted the
largest increase in occupancy, 7.8 percent to 50.5 percent, while Denver
recorded the largest drop, 5.8 percent to 62.4 percent.