STR Reports Slowdown in U.S. Hotel RevPAR Growth

U.S. hotel revenue per available room in 2023 through June 24 is up year over year and “well above” pre-pandemic levels, but those gains are decelerating thanks to slowing shoulder nights on Sundays and Thursdays, STR managing director of international business Robin Rossmann said during the 2023 Accor Global Meeting Exchange in Paris.

RevPAR still is growing year over year in single-digit percentages, but is “just ahead” of last year, indicating signs of slowing or stabilizing, according to Rossmann. The primary reason for the slowdown is that shoulder nights are lagging 2022 numbers, according to Rossmann, calling it “very interesting” because “it’s not across the whole segment of demand.”

“When you look at shoulder nights, Sundays and Thursday, and weekend nights, Fridays and Saturdays, that’s where we’re seeing the year-on-year declines coming through,” Rossmann said. The U.S. is the first country “where there is a bit of a pullback” year over year on shoulder nights, he said.

According to STR, while shoulder nights are behind 2022 numbers, they are the most recovered compared with 2019 levels. Monday is the least recovered day of the week compared with 2019. Rossmann highlighted these lower-performing nights as opportunities for corporates and suggested planners capitalize on Monday and Thursday slots for corporate events.

Average daily rate is still “well ahead” of both 2019 and 2022 levels and continues to grow, but also is showing signs of softening, Rossmann said. Occupancy remains flat against 2022 levels, according to STR.

Angelique Platas www.businesstravelnews.com