Hotel average daily rate (ADR) continues to drive revenue per available room (RevPAR), with growth up 6.1 percent based on current reservations in comparison to last year, according to the May 2012 TravelClick North American Hospitality Review (NAHR). The May NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by April 29, 2012 for the period of May 2012 to April 2013.
Group and transient segments represent an ADR increase of 4.3 percent and 7 percent respectively in comparison to the same time last year. Nearly all 25 of the top North American markets showed an increase in ADR, with business travel rates up 6.9 percent and leisure travel rates up 6.7 percent based on reservations on the books for the transient segment.
RevPAR looks to rise to 9.7 percent in Q2 2012 compared to the same time last year, supported by strong increases for the month of May with a 7.6 percent increase and June with a 14.8 percent increase based on current business on the books. May and June are showing a 4.7 percent increase in group committed occupancy and a 4.4 percent increase in transient demand in comparison to the same time period last year.
Based on the behavior of early bookers, occupancy growth for Q3 2012 is being driven mostly by group demand at this point in the booking cycle. Reservations on the books show transient demand up 13.7 percent over the same time last year and group demand up 7 percent compared to a year ago. Additionally, ADR is up 7.5 percent, driven by both group and transient.
