ORLA Convention & Oregon STR Presentation
At this year’s ORLA Convention, Emile Gourieux with STR presented “The State of the Oregon Hotel Industry”. Markets covered in the report included:
- Bend / Redmond, OR
- Eugene, OR
- Medford / Grants Pass, OR
- Oregon East Area
- Oregon West Area
- Portland, OR (divided in 5 sub markets)
- Beaverton / Sunset Hwy West
- Lake Oswego / I-5 South
- Portland Airport / Vancouver, WA
- Portland CBD
- Portland I-84 / I-205 East
The following chart shows Occupancy and ADR (YTD August 2018) for the above mentioned primary markets in Oregon, with Portland and the Bend / Redmond area leading the state:
Here is the RevPAR (YTD August 2018) for these markets (please note the RevPAR Composition is almost completely dependent on rate growth as % change in Occupancy for all markets (except the Oregon East Area) was negative.
Oregon State: $85
Bend Redmond: $94
Medford / Grants Pass: $65
Oregon East Area: $61
Oregon West Area: $75
The Portland Market:
The following chart shows Occupancy and ADR (YTD August 2018) for the above mentioned sub markets in Portland, with Portland CBD in the lead:
Here is the RevPAR (YTD August 2018) for the Portland sub markets with Portland CBD well ahead in RevPAR as well:
Beaverton / Sunset Hwy West: $89
Lake Oswego / I-5 South: $89
Portland Airport / Vancouver, WA: $90
Portland CBD: $145
Portland I-84 / I-205 East: $67
Looking at Day of the Week Occupancy, Saturday comes out on top at 79.1 %, showing that Leisure travel is dominant in the Portland market. However, weekdays are the money-makers with Tuesday and Wednesday leading the rest with ADR averaging $144 for both days.
Looking at all hotel classes from 2014 -2017 and YTD August 2017 and 2018, the numbers show that both Group and Transient Occupancy are pacing down this year, although Group ADR ($139 : YTD August 2018) is closing the gap with Transient ADR ($141 : YTD August 2018).
In Portland, Upper Upscale development is leading Supply growth. Supply % Change in Portland:
Luxury: 1.5 %
Upper Upscale: 7.5 %
Upper Midscale: 3.8%
As for the Portland Market Pipeline, the heaviest supply growth is still to come with a total of 5,729 rooms still in the Construction / Planning phases.
Optimal Occupancy Nationally (a new STR resource):
Another interesting slide that was presented shows the ideal % Occupancy for maximum % GOP at the different levels of hotel class (nationally):
Thank you for another great event! For more info about the presentation, please contact Brian Resendez (503) 577-7710.