US Hotels Post 7.2% RevPAR Gain as Philadelphia and Chicago Lead Top Markets

U.S. hotels posted another strong week of year-over-year gains, with RevPAR up 7.2% for the week of August 2-8, according to CoStar/STR data. The gains were broad-based across the Top 25 markets, with Philadelphia and Chicago leading the pack even as occupancy nationwide ticked down slightly from the prior week.

Philadelphia posted the sharpest increases of any major market, with average daily rate up 19.6% to $175.02 and RevPAR up 32.1% to $137.55. St. Louis saw the largest occupancy lift, up 15.1 percentage points to 75.4%, while Miami and Nashville were among the markets posting notable declines for the week.

Nationally, occupancy for the week ended August 8 came in at 70%, down from 71.3% the prior week, while ADR reached $166.85 and RevPAR landed at $116.77. Analysts point to a mix of business and leisure demand as the driver behind the sustained rate growth, even as occupancy softens slightly from summer peaks.

Forecasters expect the rate-driven growth to continue through the back half of the year, with luxury chains projected for double-digit RevPAR growth in both the second and third quarters, lifting full-year ADR growth to roughly 5.9% industry-wide.

Sources: Hospitality Net, CoStar