November 28, 2012

Miami, Boston see highest hotel rate increases


STR gives an exclusive look at the rate landscape in some of the most popular U.S. markets, as hotels fill record numbers of rooms. The four cities with the biggest rate increases so far this year? San Francisco, Oahu, Boston and Miami.

Room demand in the USA is stronger than it has ever been. Case in point: In July of 2012 the hotel industry sold more room nights than ever before: 106 million.

So despite macro-economic and political uncertainty one thing is clear; Americans are traveling, be it for business or pleasure. At the same time, lending for new hotel construction is scarce and therefore only very few new hotels are opening across the USA.

The strong demand numbers lead to higher occupancy levels, which in turn lead to what hoteliers refer to as "compression nights", i.e. nights where only very few rooms are available for sale. As with everything in economics, this supply/ demand imbalance then leads to increases in prices, or in our case, higher room rates.

Get the full story at USA Today