Hotel Group ADR Up Nearly 2 Percent This Year, According to New Report

August 16, 2019

When it comes to meetings and conventions hotel bookings, rates are rising: The average daily rate (ADR) for groups is up 1.9 percent compared to 2018. But the higher rates aren’t slowing group bookings down. Those numbers are also trending upwards, with a 0.3 percent increase in committed room nights compared to July 2018.

The transient segment ADR is also up, though only slightly at 0.2 percent; transient business ADR was down 2 percent.

This data was part of findings released by TravelClick, an Amadeus company, in its July 2019 North American Hospitality Review.

“July’s new reservation pace showed signs of improvement versus recent months,” said John Hach, senior industry analyst for TravelClick. “In addition to new booking growth of over 1 percent, July’s results also provided an uptick in third and fourth quarter 2019 group reservations.”

He added, “While it is premature to consider these results a sustaining trend, there are several underlying data points demonstrating broader reservation pace growth across numerous North American markets.”

The July NAHR looked at group sales commitments and individual reservations in 25 major markets across North America that were booked by July 1, 2019.

U.S. hotel gross bookings have been steadily rising over the past decade, growing from $116 billion in 2009 to $185 billion in 2017. And based on the current numbers and historical data, TravelClick estimates a 2.9 percent increase in ADR for all travel segments this year, including a 3.8 percent increase for groups. 

Yet the booking pace for future — 2021 and onward to be specific, according to Business Travel News — is down. As the supply (number of hotel rooms available) grows to match demand, offering a wider range of choice for group bookings, group rates in a number of markets may well decrease. Keep this data in mind as you negotiate for future.

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