Marketview Snapshot U.S. Hotels Q4 2016

•    The national unemployment rate fell to 4.7% in Q4—the lowest level since the Great Recession—and non-farm employment increased by 165,000 jobs per month, according to the Bureau of Labor Statistics (BLS).

•    Lodging demand grew 2.3% year-over-year in Q4, compared with 1.6% in Q3. The solid demand gains pushed up occupancy by a half percentage point to 60.7% in Q4—the highest fourth-quarter occupancy level since STR began recording this metric in 1987.

•    The year-over-year number of available rooms nationally increased slightly by 1.7%. Rooms under construction grew 2.2% from the Q3 total to about 187,000 units, with another 150,000 rooms expected to open within 12 months.

•    Despite record occupancy, overall ADR growth was somewhat muted in Q4 at 2.6%. Economy hotels had the largest ADR growth at 3.2% in Q4 compared with a year earlier.

Download the full report.