RevPAR Grows at Slowest Rate Since 2010
- Hotel demand grew 1.9% nationally in Q2 2019, about 0.5% slower than in Q1. Supply growth remained at 2.0%.
- Dayton, Ohio had the largest year-over-year demand increase (10.1%), as several new hotels recently opened and the two-day Dayton Air Show attracted nearly 50,000 spectators in June. Large gains also occurred in Denver (8.7%) and Nashville (7.8%).
- National occupancy decreased 0.1% year-over-year, keeping occupancy just above 70% in Q2.
- ADR grew by 1.2% year-over-year in Q2, down from 3.1% a year ago. RevPAR grew by 1.1% year-over-year, a slower pace than the 4.1% of a year ago and the lowest rate since the current hotel cycle began in Q1 2010.
- 29 of the 60 markets tracked by CBRE Hotels’ Americas Research had supply gains of more than 2% in Q2, three fewer than in Q1.
- 30 markets had declines in occupancy, one more than in Q1.
- Albuquerque had the highest RevPAR gain (14.3%), driven by a nearly even split of occupancy and ADR growth. Dayton (7.9%) and Raleigh-Durham (6.7%) also had high RevPAR gains.
- Of the top-10 markets for RevPAR growth, five had increases driven primarily by ADR growth. Minneapolis and Philadelphia produced their RevPAR gains despite declining occupancy, the only two of the top-10 RevPAR markets to do so.