Occupancy Slips for Second Consecutive Quarter

  • Overall hotel demand grew by 1.8% year-over-year in Q3 2019, about 0.1% slower than in Q2 but 0.3% better than the rate of a year ago. Supply growth remained at 2.0%.
  • Austin had the largest year-over-year demand increase (9.1%). Large gains also occurred in Houston (8.8%) and Denver (8.2%).
  • National occupancy decreased 0.1% year-over-year to just over 70%—an improvement from the 0.5% rate of decline in Q3 2018.
  • ADR grew by 0.8% year-over-year in Q3, less than the 2.2% rate of a year ago. RevPAR grew by 0.7%, a slower pace than the 1.7% of a year ago and the lowest rate since the current hotel cycle began in Q1 2010.
  • 33 of the 60 markets tracked by CBRE Hotels’ Americas Research had supply gains of more than 2% year-over-year in Q3, four more than in Q2.
  • 30 markets had declines in occupancy, the same number as in Q2.
  • Louisville had the highest RevPAR gain (10.0%), driven by a nearly even split of occupancy and ADR growth. Tucson (9.4%) and Albuquerque (9.2%) also had high RevPAR gains.
  • Of the top 10 markets for RevPAR growth, seven had increases driven primarily by ADR growth; however, all the top 10 RevPAR growth markets had increases in occupancy as well.