Smith Scores First-Half RevPAR Record

Smith Travel Research today announced the domestic hotel industry realized a 9 percent gain in revenue per available room in the first half of 2006, compared with the same period last year. The $61.30 RevPAR for the first half was attained in part to a 6.8 percent growth in average daily rate from the same period last year, combined with a 2.1 percent uptick in occupancy.

Jan Freitag, Smith Travel Research vice president, said the first-half RevPAR figures represent the highest year-over-year increase for the first six months since Smith Travel Research started tracking the hotel industry in 1988.

"First-half industry performance was strong, particularly considering prior year comparisons were tough," said Mark Lomanno, president of Smith Travel Research. "Year-over-year comparisons will be even more difficult in the second half. Additionally, many forecasts call for slower economic growth for the balance of 2006. We anticipate continued RevPAR growth in the second half, but probably somewhat slower than the 9 percent increase we experienced in the first half."

In June alone, systemwide occupancy topped out at 70.8 percent, while RevPAR grew 8.6 percent to $68.82.