© 2016 STR, Inc. All Rights Reserved. illustrations: Ilze Kolosovska & jon edwards

RevPAR

Q1Q2RevPAR

201

5 2

016

After flat performance in April and only 0.3% growth in May, transient ADR increased 1.9% in June, but slow rate growth has been a concern all year.

June YTD supply in the segment increased 5.1% while demand only grew by 4.8%.

Transient ADR growth is SLOWING

Supplyoutpaceddemand in theupscale segment

5 TAKEAWAYS FROM JUNE’S

U.S. Performance DataThe hotel industry has reached

the halfway point in 2016 as the current cycle continues

to unwind. Here’s a look at five things to know about June’s hotel

performance data from STR, HNN’s parent company.

1

2

3

4

5

June’s RevPAR increased 3.8%—second in 2016 only to April (+5.0%)—and Q2 RevPAR grew by 3.5%.

Supply reached a level not seen since July 2010. But new supply is still well below the development activity seen in the last cycle.

Perhaps the biggest red flag, 2016 YTD demand growth is only 1.6%, down from 3.0% through the first six months of 2015.

5.1%

4.8%

YTD demand growthis down from 2015

In Q1, RevPAR only grew by 2.6%, versus Q2’s 3.5

3.0%1.6%

growthreached 1.6%in June

Supply growth