Hotel Demand Growth Continues in Q1

  • Hotel demand grew at a rate of 2.4% nationally in Q1 2019, down slightly from a year ago. The pace of supply growth increased year-over-year to 2%.
  • Louisville had the largest year-over-year demand increase (11.4%). High gains also occurred in Nashville (10.2%) and Milwaukee (8.6%).
  • National occupancy growth was 0.4% year-over-year, setting a new Q1 occupancy record of 61.8%.
  • ADR grew by just 1.1% nationally in Q1, the slowest year-over-year ADR growth rate since Q2 2010. RevPAR grew by 1.5% year-over-year, a slower pace than the 3.5% of a year ago and the lowest rate since Q1 2010.
  • 32 of the 60 markets tracked by CBRE Hotels Americas Research had supply gains of more than 2% in Q1, one market more than in Q4 2018.
  • 29 markets had declines in occupancy, two fewer than in Q4.
  • San Francisco had the highest RevPAR gain (15.9%), driven entirely by an ADR increase. Super Bowl LIII host Atlanta had a RevPAR gain of 14.1% and ADR growth of 12.7%. Milwaukee (11.9%) and Sacramento (11.6%) also had high RevPAR gains.
  • Of the top-10 markets for RevPAR growth, six had increases driven primarily by ADR growth. Oakland produced its RevPAR gain despite declining occupancy, the only top-10 RevPAR market to do so.