NEW YORK — Hotels in major North American markets are experiencing an improved average daily rate (ADR), according to new data from TravelClick’s October 2015 North American Hospitality Review, which examines group sales commitments and individual reservations for hotel stays that are booked by Oct. 1, from October 2015 to September 2016 in the 25 major North American markets.
Committed occupancy for Q4 2015 to Q3 2016 is up 3.1 per cent compared to a year ago. However, new commitments over the last month are down -3.5 per cent. New group business bookings over the last month are down -1.3 per cent compared to the same period last year, and new transient reservations booked over the last month are down -4.6 per cent. While the booking pace may be down, ADR is up 3.8 per cent based on reservations that are currently on the books for 2015.
“Over the past month, there has been a noticeable decline in new reservation pace. This could be a result of a combination of recent developments — including concern over a global economic slowdown, financial market turbulence and the seasonal slowdown of advance booking pace that often occurs during this time of year,” said John Hach, TravelClick’s senior industry analyst. “However, the weakening pace has not kept hoteliers from increasing ADR.”
For the next 12 months, transient bookings are up 0.1 per cent year-over-year, and ADR for this segment is up four per cent. The transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 2.3 per cent and ADR gains of 3.5 per cent. The transient business (negotiated and retail) segment is down -2.6 per cent, but ADR is up 5.1 per cent. Group segment occupancy is up 4.4 per cent, and ADR has increased 3.3 per cent compared to the same period last year.