August 26th, 2019 – ROCKVILLE, MD
More than midway through 2019 it is a good time to reflect on the hotel industry’s performance so far this year. Year-to-Date through June 2019, the percentage of total room nights booked by members of brand loyalty programs increased 4.4% year-over-year (YOY) to 53.9% of all room nights booked at hotel brands with existing loyalty programs, citing Kalibri Labs’ U.S. Hotel Industry Performance Overview (HIPO). When looking at bookings by source of business, Brand.com and OTA Bookings continued their dueling track meet, each with 6.6% YTD growth YOY.
Guest-Paid RevPAR and COPE RevPAR* decreased 1.6% and 1.39% YOY, respectively, driven by occupancy declines of 1.9% YOY, and indicating only modest ADR growth. Nationally, Length of Stay decreased by 2.67% YOY, and each of the top 10 MSAs in the U.S. HIPO showed considerable declines in Length of Stay. Booking Lead Time held steady at 23.6 days across all markets, chain scales and channels.
“While it’s encouraging to see Guest Paid ADR hold steady, or even show modest growth in some chain scales,” says Mark Lomanno, partner and senior advisor at Kalibri Labs, “There is some concern or trepidation in the RevPAR figures based on declining occupancy and very modest ADR growth in most markets. Weakening industry fundamentals caused by the rapidly changing nature of today’s lodging industry will require focused attention over the latter half of 2019 and into 2020.”
The full details of the U.S. Hotel Industry Performance Overview are available at KalibriLabs.com. Additionally, Kalibri Labs now offers a new, complimentary Market Kalibration newsletter that provides a summary of U.S. hotel performance trends. Visit www.Kalibrilabs.com/trends to download the first installment.
ABOUT KALIBRI LABS
Kalibri Labs evaluates and predicts revenue performance using its proprietary algorithm to generate the Optimal Business Mix for individual hotels, revealing the most promising opportunities to pursue along with specific direction on how to find and convert them. The Hummingbird PXM revenue strategy and benchmarking platform also includes the industry’s most robust profiles for travel agent and OTA production. The Kalibri Labs database, updated monthly, is comprised of ADR, room revenue, room nights and acquisition costs from over 7 billion guest stays adding 100 million each month from over 33,000 hotels dating back more than 5 years to give an expansive view of the U.S. hotel industry. Real estate developers, brokers and others involved in hotel transactions use Kalibri Labs data to improve underwriting with a more granular view of each market and benchmarks and trendlines for both individual hotels and sub-markets for all U.S. metro areas.
For more information, please visit KalibriLabs.com