For the second straight month, U.S. hotel revenue per
available room and average daily rate In January increased strongly year over
year, and occupancy increased as well, according to hotel analytics firm STR.
U.S. RevPAR in January increased 4.5 percent year over year
to $79.42, while ADR increased 3.4 percent to $151.20 and occupancy rose 1
percent to 52.5 percent. The increases were similar to those
reported for December 2024.
STR pointed to several factors that played a role in the
RevPAR increase, including the U.S. presidential inauguration, the Los Angeles wildfires
and continued recovery from hurricanes Helene and Milton, which caused
extensive damage in the Southeast last autumn.
STR separately noted a significant spread developing in
RevPAR by service tier as the month progressed, finding in the last week of the
month that RevPAR at luxury properties increased 8.2 percent year over year but
increased 1.3 percent in the economy tier. The bifurcation between the
performance of higher and lower tiers has proven
a persistent theme during the past 12 months.
STR again said its top 25 markets "showed higher
occupancy and ADR than all other markets," which it noted throughout 2024.
Tampa, Fla., registered the highest January occupancy rate
among STR's top 25 U.S. cities at 79.9 percent, up 17.6 percent year over year
and attributable to hurricane recovery, according to STR. It's the first month since
July 2024 that a city other than New York City led STR's monthly occupancy.
St. Louis logged the lowest occupancy of the month at 42.9
percent, followed by Minneapolis at 43.1 percent.
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STR
December 2024 hotel performance figures