North American Hotel Industry Sees Growth in 2012

Press release from the issuing company

Tuesday, October 25th, 2011

TravelClick'sOctober 2011North American Hospitality Review indicates the hotel industry is continuing to show strong growth in the business, leisure and group travel segments. The North American Hospitality Review is based on actual hotel bookings for the periodOctober 1, 2011throughSeptember 30, 2012.

For the next twelve months, committed occupancy is up 4.8 percent year-over-year, average daily rate (ADR) is up 4.0 percent, and revenue per available room (RevPAR), a top-line indicator, is tracking ahead by 6.5 percent.

Markets showing the most year-over-year occupancy growth include:

Top Five Strongest U.S. Travel Markets


Committed
Occupancy

Reserved ADR

Reserved





Detroit

22.1%

4.7%

24.8%

Charlotte

20.4%

5.7%

10.9%

Houston

15.9%

3.1%

9.3%

Seattle

15.9%

-3.6%

-0.9%

Philadelphia

15.1%

8.1%

14.1%




Markets that show negative occupancy growth include:

Top Five Weakest U.S. Travel Markets


Committed
Occupancy

Reserved ADR

Reserved

Minneapolis-St. Paul

-8.6%

8.4%

7.7%

Denver

-8.2%

-7.3%

-16.6%

Dallas

-3.6%

-1.1%

-0.4%

Honolulu

-3.2%

12.6%

21.5%

Phoenix

-2.0%

1.3%

-1.6%


"While there is much uncertainty regarding where the overall economy is headed, hotel industry performance over the remainder of 2011 and heading into 2012 continues to look strong," saidTim Hart, executive vice president, business intelligence, TravelClick. "TravelClick's forward-looking demand data reveals that RevPAR for the fourth quarter is tracking ahead of last year by 6.2%, based on reservations on the books. This improving performance is driven by both stronger occupancy and improved ADR."

Fourth Quarter 2011 (October 2011December 2011)

In Q4 2011, ADR is up 4.1 percent compared to last year and will be the primary driver of RevPAR for the third consecutive quarter. Data from theSeptember 2011NAHR revealed a modest 0.8 percent increase in occupancy, however, new data from theOctober 2011NAHR reveals that occupancy is now up 3.6 percent, year-over-year. This increase in demand is driven by an improvement in booking pace during Q3 2011.

Markets that show above average occupancy growth in the fourth quarter areDetroit(21.9 percent),Philadelphia(11.2 percent) andMiami(9.2 percent). Markets showing below average growth areAtlanta(-8.7 percent),Denver(-7.6 percent) andOrlando(-2.8 percent).

First Quarter (January 2012March 2012)

According to the report, demand in the first quarter of 2012 is strong, with pace – room nights added over the past month – up 15.3 percent and total committed occupancy up 2.4 percent compared to last year. Group blocks are showing a 2.0 percent increase compared to 2011, with group pace up a strong 18.7 percent.

Markets that show strong occupancy growth in the first quarter of 2012 areIndianapolis(37.7 percent),Detroit(26.3 percent) andChicago(25.6 percent). Markets showing negative occupancy growth areDallas(-23.1 percent),Tampa(-14.5 percent) andDenver(-12.4 percent).