First-Quarter Hotel Performance Strong

First-quarter results released today by Smith Travel Research confirmed earlier evidence that the 2004 U.S. lodging industry rebound continued to gain momentum in 2005. Occupancy reached 58.4 percent during the period, up 2.8 percent versus the first quarter of 2004. First-quarter average room rate increased 4.2 percent and revenue per available room improved 7.2 percent. The increase in ADR is of particular concern to travel buyers as they try to keep a lid on increases in negotiated rates.

Smith Travel president Mark Lomanno described the quarterly results as impressive. "With room supply growth remaining relatively low and demand growth likely to be healthy, we anticipate higher occupancy and good pricing leverage for full year 2005," Lomanno said.