STR: July U.S. Hotel Rates Set Another Record

U.S. hotels in July set a monthly record for average daily rate and revenue per available room, according to hospitality research firm STR, but the slow return of midweek business travel demand continued to hinder occupancy growth.

July ADR was $159.08, up 17.5 percent from July 2019 levels and up from $155.04 in June 2022, another illustration not only of returning demand but also persistent inflation. July RevPAR of $110.73 was up 11.2 percent from July 2019 and up from $108.64 in June 2022.

After cracking 70 percent in June for the first time since the Covid-19 pandemic began, July occupancy retreated to 69.6 percent, a traditionally typical slowdown, according to STR. July occupancy was 5.4 percent lower than that of July 2019.

STR in a separate analysis of June 2022 data indicated that a “lack of midweek business demand remains a drag on demand (and thus occupancy) recovery,” and that “midweek business travel has been so slow to rebound that groups have overtaken transient demand growth.”

Still, STR noted that increasing business travel levels nevertheless have helped boost the top 25 U.S. markets in July to occupancy and rate levels beyond the rest of the country.

Oahu’s July occupancy level of 86.3 percent topped STR’s list of the top 25 U.S. locations, while New Orleans at 57.2 percent and Phoenix at 57.3 percent brought up the rear.

Chris Davis  www.businesstravelnews.com