This week in Hospitality & Tourism #3 2023

STR: U.S. hotel construction up year over year for first time since late 2020

After 25 consecutive months of year-over-year declines, U.S. hotel construction increased slightly in December, according to pipeline data from STR.

At a market-level, New York City, Phoenix and Dallas are set to see the largest supply percentage increases from current construction. Among the chain scales, the Luxury and Upscale segments lead in that measurement.

U.S. Hotel Pipeline
December 2022 (percentage change in comparison with December 2021):

• In Construction: 159,344 rooms (+0.3%)
• Final Planning: 213,066 rooms (+15.0%)
• Planning: 240,092 rooms (-15.6%)

STR: U.S. hotel results for week ending 14 January

U.S. hotel performance rose from the previous week and showed mixed comparisons against 2019, according to STR‘s latest data through 14 January.

• While none of the Top 25 Markets reported an occupancy increase over 2019, Dallas came closest to its 2019 comparable (-2.1% to 69.0%).
• San Francisco posted the highest ADR (+141.1% to US$574.24) and RevPAR (+91.9% to US$373.97) jumps over 2019, helped by the 41st Annual J.P. Morgan Healthcare Conference.
• The steepest RevPAR declines from 2019 were seen in Detroit (-32.6% to US$55.32) and Seattle (-21.8% to US$78.26).

8-14 January 2023 (percentage change from comparable week in 2019):

• Occupancy: 54.8% (-5.5%)
• Average daily rate (ADR): US$144.81 (+15.7%)
• Revenue per available room (RevPAR): US$79.38 (+9.3%)