ADR beats expectations with strong growth 

  • Hotel demand grew 3.1% in Q2 2018, up from the 2.9% rate in Q1. Supply growth remained at 2.0%.
  • Omaha had the largest year-over-year demand increase (10.9%). High gains also occurred in Houston (7.9%), still recovering from Hurricane Harvey, and Cleveland (6.8%).
  • National occupancy rose by 1.1% year-over-year, continuing a growth trend in quarterly occupancy to record levels.
  • ADR grew by 2.9% in Q2, the fastest growth since Q3 2016. RevPAR grew by 4.0% year-over-year in Q2, a faster pace than a year ago. 
  • Thirty-seven of the 60 markets tracked by CBRE Hotels’ Americas Research had supply gains of more than 2% in Q2, higher than in Q1; however, 19 markets had declines in occupancy, 12 fewer than in Q1.
  • An impressive 10.1% increase in ADR gave San Francisco the largest increase in RevPAR (10.4%) in Q2. Omaha (10.1%) and Houston (9.2%) also had high RevPAR gains.
  • Of the top-10 markets for RevPAR growth, only Cleveland and Omaha saw increases driven primarily by occupancy. San Francisco produced its RevPAR gain with nearly no gain in occupancy.