STR Reports US Hotel Performance for March 2011

According to data compiled by STR, the U.S. hotel industry posted increases in all three key performance measurements during March 2011.

In year-on-year measurements, the industry's occupancy was up 6.1 percent to 61.4 percent, the ADR ended the month with a 3.8 percent increase to reach USD101.72 while RevPAR for the month rose 10.1 percent to finish at USD62.47.

"The U.S. hotel industry recorded another demand increase during March 2011, which, when combined with room revenue and RevPAR increases of more than 10 percent, signals an ongoing recovery," said Amanda Hite, STR's president. "As in prior months, the highest ADR increases were recorded at the luxury end of the spectrum. Luxury segment RevPAR growth was almost equally made up of ADR and occupancy growth, sending a strong signal to lower-rated chain scales that pricing power is returning."

U.S. Hotel Construction Took Deep Drop in September

The number of rooms in the U.S. hotel industry's active pipeline declined 21.9 percent year over year in September, though construction activity remained vigorous in a few key business travel markets, according to Smith Travel Research data released this week.

Virgin's Richard Branson plans his own line of luxury hotels

Billionaire Richard Branson, peddled everything from airline tickets to space travel under his Virgin brand's iconic name, hopes to bring his own brand of hip to the hotel scene.

His newly created Virgin Hotels will likely appeal to younger, up-and-coming travelers: "the guys walking around with the shirt untucked and no ties, very similar to Mr. Branson," says Charles Quinn of hotel investment advisory firm CBRE Hotels.

5 things to know

1. Three special servicers are shopping more than USD 400 million of nonperforming hotel mortgages, according to a report in the Commercial Mortgage Alert.

Most of the loans are being supplied by LNR Partners with C-III Asset Management and J.E. Roberts Companies providing the rest. A two-day online auction will start 1 November, run by a partnership between Jones Lang LaSalle and REDC. Bidders can make offers on individual loans.