HENDERSONVILLE, TN According to Smith Travel Research (STR), industry occupancy reached 59.1% in the first three months of 2001, representing a decrease of 0.3% versus 1Q 2000. ADR is reported to have increased 3.7% to $89.26, and RevPAR is up 3.4% to $52.74 in the first quarter.
Industry room supply increased 2.9% in the quarter while demand gained 2.6%, the report said. Room revenue grew more than 6% to $19.3 billion, said STR.
For the month of March 2001, occupancy fell 1.7% to 64.8% while room rate grew 2.8% to $89.75, according to STR statistics. March RevPAR increased 1% to $58.12, room supply grew 2.9% and demand growth slowed to 1.2% versus the same period in 2000.
In analyzing the figures, Mark Lomanno, president of STR, said, “the effects of the slowing U.S. economy are evident in the industry s first quarter performance.” Lomanno suggests that slower demand growth will persist into April and that the summer travel season will play a critical role in the industry s performance for the balance of the year. (4/26/01)