Hotels Just Had a 12.6% Week, and Luxury Led the Pack

U.S. hotels posted a strong week. STR/CoStar reported that revenue per available room rose 12.6 percent year over year to $125 for the week ending October 24, with average daily rate up 7.4 percent and occupancy up 4.8 percent.

Luxury hotels led the chain scales with a 15.2 percent gain, while economy hotels rose 9.3 percent. Among markets, Chicago was the top performer at 40 percent, driven by the Pack Expo trade show. Tampa and Las Vegas each gained 26 percent, while Oahu was the weakest, falling 11 percent.

Barclays’ tracker of the major hotel companies showed all five groups up more than 11 percent for the week. Hyatt led at 12.1 percent, followed by Marriott and Choice at 11.7 percent, Hilton at 11.5 percent and Wyndham at 11.3 percent. Hotel stocks also moved higher on Wednesday, with Hilton up 1.4 percent, Marriott up 1.1 percent and Hyatt up 0.3 percent.

The supply side is growing too. Lodging Econometrics counted a record 355 hotel projects with 49,209 rooms in Canada’s construction pipeline at the end of the third quarter, led by Toronto and Vancouver.

Sources: Skift Daily Lodging Report