The US hotel industry saw positive performance trends in September 2023, as reported by CoStar, a prominent provider of online real estate marketplaces and property market analytics.
The data from September 2023 revealed key insights on occupancy, average daily rates and revenue per available room (RevPAR) compared to the same month in the previous year.
In September 2023, the overall hotel occupancy rate in the United States stood at 66.2%, a marginal decrease of 0.5% compared to September 2022.
This relative stability suggests that the industry maintained a steady footing during this period.
Average Daily Rates increase significantly
One notable highlight from the September 2023 data was the increase in average daily rates (ADR). The ADR for the month was reported at $160.18, reflecting a noteworthy rise of 3.5% compared to the previous year.
This uptick in ADR could indicate stronger pricing power within the industry and be seen as a positive development for hotel operators.
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The data also showed a positive trend in RevPAR for September 2023. RevPAR for the month amounted to $106.07, a 2.9% increase compared to September 2022.
This metric combines both occupancy and ADR, showcasing an overall improvement in the industry’s financial performance.
Varied performance in top markets
Among the top 25 markets, New York City emerged as a standout performer with an impressive occupancy rate of 87.6% in September 2023 – a year-on-year increase of 1.6%, indicating a strong recovery in the city’s hotel sector.
But not all markets fared equally well. New Orleans and Houston recorded the lowest occupancy rates for the month, with figures of 53.0% and 59.5% respectively.
These lower occupancy rates point to variations in the recovery process across different regions.
Top 25 markets outperforming others
The top 25 markets continued to outperform others, showcasing higher occupancy rates and average daily rates. This suggests that major metropolitan areas are driving the recovery and growth of the US hotel industry.
The latest data from CoStar for September 2023 indicates a mixed but overall encouraging performance from the US hotel industry. While occupancy saw a slight dip, average daily rates and RevPAR demonstrated positive growth.
The varying performance of different markets underscores the diversity of the recovery process across the country, with major cities leading the way.