occupancy reached 66.8% during the second quarter, reports Smith Travel Research. That occupancy rate was up 0.4% versus the same quarter in 2006. The second quarter average room rate gained 5.4% to $103.07 while revenue per available room (RevPAR) increased by 5.7% to $68.90 during the quarter.
In the first half of 2007, industry occupancy fell by 0.2% to 63.2% versus the same period in 2006. Average room rate was up 5.7% to $102.95 and RevPAR gained 5.5% to $65.09. Room supply during the first six months of the year increased by 1.1% while demand, or total room nights sold, increased by 0.9%. Room revenue grew 6.7% during the first six months of 2007 to $52 billion.
“First half industry performance was basically in line with expectations,” says Smith Travel Research president Mark Lommano. “Year-over-year comparisons will be easier in the second half and economic forecasts are generally calling for marginal improvement over the balance of 2007. We believe full year 2007 RevPAR growth will fall in the 5 to 5.5% range.”