Occupancy drops, breaks seven-quarter growth streak
- Hotel demand grew 1.6% nationally in Q3, down from 3.1% in Q2. Supply growth remained at 2.0%.
- Pittsburgh had the largest year-over-year demand increase (9.2%). High gains also occurred in Phoenix (7.6%) and Raleigh-Durham (7.1%).
- National occupancy declined by 0.4% year-over-year, the largest drop since Q1 2016 and the second-largest since the last recession. The drop in occupancy is largely attributable to abnormally higher demand last year due to the Texas and Florida hurricanes.
- ADR grew by 2.1% nationally in Q3, well above the 1.5% rate in Q3 2017 but below the growth rate of the past three quarters.
- Thirty-eight of the 60 markets tracked by CBRE Hotels’ Americas Research had supply gains of more than 2% in Q3, one more than in Q2. Thirty-four markets had declines in occupancy, 15 more than in Q2.