Q4 2015 U.S. Hotel MarketView

March 11, 2016
 
OVERVIEW
 
  • Annual RevPAR growth for 2015 was 6.3% while Q4 2015 registered year-over-year growth of 4.8%.
  • National occupancy reached a new annual high of 65.5% in 2015.
  • San Jose-Santa Cruz and Oakland recorded year-over-year ADR growth above 10% in Q4 2015 while southern markets saw ADR and RevPAR gains.
  • Year-over-year, supply growth accelerated during Q4 2015, to 1.4%.
  • Airport locations continue to lead ADR performance despite the strong dollar.
  • Hotel investment experienced a small (7%) quarter-over-quarter increase in Q4 2015; $7.9 billion brought the annual total to $41 billion, setting a new investment record. Acquisitions activity during Q3 and Q4 was quite subdued in comparison to the prior four quarters, however, setting the stage for lower volumes in 2016.
  • Cap rates began to edge up in Q4 2015, with suburban hotels experiencing slightly larger increases than CBD, according to CBRE's H2 2015 North America Cap Rate Survey. 

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