STR Reports 2Q Lodging Results

NEW YORK— Smith Travel Research (STR) reported that during the second quarter 2001, occupancy in the U.S. lodging industry decreased of 4.6% to 64.7%. Average room rate increased 0.9% to $86.21, while RevPAR decreased 3.7% to $55.81 in the quarter. Industry room supply increased 2.7% while demand fell 1.9%, and room revenue decreased 1% to $20.8 billion. Year-to-date through June 2001, occupancy fell 2.7% to 61.9%, while room rates grew 2.3% to $87.67, STR said. RevPAR for the first half of the year declined 0.4% to $54.28. Room supply grew 2.8% compared to the first six months of 2000, while room demand growth was up 0.1%. For the month of June 2001, occupancy fell 4% to 69.1%, while room rates were flat at $85.32, STR reported. REVPAR declined 4% to $58.99, the company said. Mark Lomanno, president/Smith Travel Research, stated that preliminary indications suggest continued weakness in July, and that based on the industrys first half performance and the weak economic outlook for the balance of 2001, STR anticipates that full year industry RevPAR will be flat-to-down for full year 2001.