The U.S. hotel industry experienced steep declines in three key
performance measurements during the week of 21-27 December 2008,
according to data from STR.

In year-over-year measurements,
the industry's occupancy fell 16.4 percent to end the week at 35.8
percent (42.8 percent during the comparable week in 2007). Average
daily rate dropped 9.5 percent to finish the week at US$92.49
(US$102.22 in 2007). Revenue per available room for the week decreased
24.3 percent to finish at US$33.13 (US$43.78 in 2007).

Performances within the seven chain-scale segments were off across the board:

• Luxury segment: Occupancy -24.4 percent to 40.5 percent; ADR -14.5 percent to US$310.83; and RevPAR -35.4 percent to US$125.98.
• Upper Upscale segment: Occupancy -19.6 percent to 34.6 percent; ADR -11.6 percent to US$128.53; and RevPAR -28.9 percent to US$44.47.
• Upscale segment: Occupancy -15.0 percent to 34.9 percent; ADR -8.0 percent to US$95.46; and RevPAR -21.7 percent to US$33.27.
• Midscale with Food-and-Beverage segment: Occupancy -17.7 percent to 31.5 percent; ADR -4.1 percent to US$77.64; and RevPAR -21.1 percent to US$24.42.
• Midscale without Food-and-Beverage segment: Occupancy -16.0 percent to 34.6 percent; ADR -3.7 percent to US$78.07; and RevPAR -19.1 percent to US$27.00.
• Economy segment: Occupancy -11.2 percent to 36.8 percent; ADR -3.3 percent to US$50.72; and RevPAR -14.1 percent to US$18.65.
• Independents segment: Occupancy -17.2 percent to 38.0 percent; ADR -10.0 percent to US$95.60; and RevPAR -25.5 percent to US$36.31.

Among
Top 25 Markets, Houston, Texas, was the only market to achieve growth
in all three measurements, as its occupancy rose 1.2 percent to 35.9
percent, its ADR increased 10.2 percent to US$78.86 and its RevPAR
jumped 11.6 percent to US$28.34. Houston's performance is largely
attributed to the influx of first responders, insurance agents and
construction workers following Hurricane Ike's landfall in September.

Many Top 25 Markets experienced difficult weeks:

• Three
  of the markets experienced occupancy rate drops of more than 20
  percent: Phoenix, Arizona, -27.5 percent; San Diego, California, -24.4
  percent; and Chicago, Illinois, -20.3 percent.
• Five of the markets watched ADR drops of more than 15 percent: Oahu Island, Hawaii,
  -17.3 percent; Miami-Hialeah, Florida, -17.0 percent; Phoenix, -16.0
  percent; New York, New York, -15.3 percent; and Orlando, Florida, -15.2
  percent. Besides Houston,
  St. Louis, Missouri, was the only other Top 25 Market to see year-over-year ADR growth for the week (+0.1 percent).
• Three
  of the Top 25 Markets watched as RevPAR declined more than 30 percent
  for the week: Phoenix, -39.1 percent; San Diego, -33.5 percent; and
  Miami-Hialeah, -31.7 percent.

The week's
results likely were skewed somewhat by the day on which Christmas fell.
This year, Christmas fell on a Thursday, while in 2007 it fell on a
Tuesday.

About STR & STR Global

For
more than 20 years, Smith Travel Research has been the recognized
leader for lodging industry benchmarking and research. Smith Travel
Research and STR Global offer monthly, weekly, and daily STAR
benchmarking reports to more than 36,000 hotel clients, representing
nearly 5 million rooms worldwide.  STR is headquartered in
Hendersonville, Tennessee, and STR Global is based in London. For more
information, visit www.strglobal.com.