Hotel Markets, Including Beleaguered New Orleans, See Revenue Rise

New Orleans is experiencing its share of troubles, but its hospitality industry caught a break as hotel revenue rose substantially last week, according to data firm Smith Travel Research.

New Orleans topped the major national markets experiencing increases in revenue per available room (RevPAR) in the week ending May 22. RevPAR rose 41.2% to $99.28 for the week. New York hotel RevPAR rose 31.8% to $227.82, the second-highest increase.

For the U.S. hotel industry as a whole, the news was mainly good, according to results in the three key performance measurements of RevPAR, occupancy, and average daily rate (ADR).

In year-over-year measurements, the industry's occupancy increased 4.0% to 61.6%. ADR ended the week virtually flat with a 0.3% decrease to $98.15. RevPAR rose 3.7% to $60.49, according to Smith Travel, based in Hendersonville, Tenn.

Among the top 25 markets, Nashville reported the largest occupancy increase, rising 29.8% to 73.5%, followed by Minneapolis-St. Paul, Minnesota-Wisconsin, up 19.7% to 69.0%. Occupancy in New Orleans rose 9.2% to 73.9%.

But the results were not all positive. Three of the top markets posted occupancy decreases: Norfolk-Virginia Beach, Va. saw occupancy decline by 3.5% to 55.7%.

San Diego hotels registered a decline in occupancy of 3.1% to 66.4%. In Miami-Hialeah, Fla., occupancy dropped 1.3% to 68.4%.

With regard to ADR, New York City experienced the largest increase. The daily rates rose 19.9% to $244.36. New Orleans reported an 18.5% increase to $134.43.

However, two markets reported double-digit ADR decreases. In San Diego, ADR declined 11.4% to $115.02, and in Seattle, 11.0% to $112.61.

San Diego also reported the largest decrease in RevPAR, which fell 14.1% to $76.32, according to Smith Travel.

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