STR Reports May 2001 RevPAR Stats Are Down

NEW YORK— Smith Travel Research reported that RevPAR growth decreased 4.4% in May, marking the largest decline in monthly RevPAR since March 1991. Occupancies declined 5.3% in May, while rates grew 0.9%. In addition, based on preliminary research, STR believes June RevPAR growth declined in several of the larger U.S. markets (similar to May trends) and that these declines could continue during July, and possibly into the second half of 2001. The primary reason for the moderation is a decline in business travel. Hotels in STR’s midscale without F&B chain segment (e.g. Comfort Inn, Hampton Inn, and La Quinta) recorded no change in RevPAR growth in May over the prior year’s statistics. Upper upscale hotels (e.g. Hilton, Marriott, and Sheraton) posted the worst RevPAR growth in May, down 7.5% (the second month in a row).