U.S. hotel occupancy fell 0.5 percent year over
year to 67 percent during May, according to STR. The average daily rate
increased 2.4 percent to $123.87. Though May's 1.9 percent year-over-year
growth in revenue per available room is the lowest of any month this year, STR
senior director of research and development Patrick Mayock said that follows a
record-breaking May 2015 and the hotel industry is "actually quite strong."
Among the top 25 markets, as measured by number of hotel rooms, Dallas saw the
largest rise in occupancy, up 5.3 percent to 73.3 percent, and also saw a 7.2
percent increase in ADR to $104.15. Los Angeles/Long Beach experienced the
largest ADR growth, though, up 10.1 percent to $167.75. Houston saw the largest
drops in occupancy, 8.2 percent to 65.4 percent, and ADR, 6.5 percent to
$113.45. Mayock said the top 25 markets underperformed the rest of the United
States, "a common theme of late."