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In year-over-year measurements, the industry's occupancy fell 10.1 percent to end the month at 53.2 percent. Average daily rate dropped 7.8 percent to finish the month at US$100.41. Revenue per available room for the month decreased 17.1 percent to finish at US$53.42.
'While it's clear that the hotel industry remains in a prolonged downturn, we remain optimistic that we will begin seeing a change for the better,' said Mark Lomanno, STR's president. 'The first two months of 2009 were tough pills to swallow for the entire industry, but specifically the Luxury segment.'
Among the seven chain-scale segments, the Luxury segment reported the largest declines in all three key performance measurements: occupancy dropped 16.7 percent to 58.9 percent, ADR was down 14.2 percent to US$261.52, and RevPAR fell 28.6 percent to US$153.94. The Economy segment reported the smallest declines in occupancy (-8.4 percent to 47.5 percent) and RevPAR (-12.4 percent to US$23.90).
'With signs of some positive movement in the economy, along with the appearance that elected officials in Washington are starting to understand the important role the travel and lodging industries play in the overall economy, we remain optimistic,' Lomanno continued. 'STR believes that the hotel industry has reached the trough, and while we expect the industry's performance to bounce along the bottom for awhile, it will turn the corner in the third quarter.'
All markets among the Top 25 Markets reported decreases in the three key performance measurements. The following markets reported occupancy decreases of less than 5 percent: Washington, D.C. (-4.0 percent to 57.6 percent), Norfolk-Virginia Beach, Virginia (-2.5 percent to 44.5 percent), and New Orleans, Louisiana (-2.0 percent to 67.4 percent). Phoenix, Arizona, reported the largest ADR decrease, falling 19.6 percent to US$138.88. Houston, Texas, reported the smallest decrease in ADR, which was down 1.3 percent to US$100.74. Four markets reported RevPAR decreases of less than 10 percent: Houston (-7.3 percent to US$65.69), Norfolk-Virginia Beach (-5.9 percent to US$30.64), Washington, D.C. (-5.8 percent to US$85.28), and New Orleans (-4.3 percent to US$90.26). Phoenix reported the largest drop in RevPAR (34.9 percent to US$87.79).
About STR & STR Global
For more than 20 years, Smith Travel Research has been the recognized leader for lodging industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 36,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tenn., and STR Global is based in London. For more information, visit www.smithtravelresearch.com or www.strglobal.com.