Hotel ADR & RevPAR Continue to Rise

Executive Summary

• Overall hotel occupancy increased by 0.8% year-over-year in Q2, as demand growth of 1.7% outpaced a 0.4% supply increase.
• The average daily rate (ADR) rose by 4.4%, driving a 5.7% increase in revenue per available room (RevPAR).
• Job openings per hotel declined to 14 in May, down by 13% year-over-year and by 8% from 2019 levels.
• Occupancy rates remained below 2019 levels for all location types. Resort locations remained the weakest at 5.4 percentage points below their pre-pandemic 2019 occupancy rate of 98.2%.
• Memphis was the top market for RevPAR growth in Q2, with a 20% year-over-year increase driven by strong occupancy gains.
• Only four markets had year-over-year RevPAR declines in Q2, led by Savannah with a 2% drop.