July – September hotel sales up 5.5 percent compared to 2013, totaling $128.2 million in revenue
(Virginia Beach, Va., December 17, 2014) – The Virginia Beach hotel industry showed strong revenue growth for the third quarter of 2014 (July – September), according to data released from Smith Travel Research (STR). Third quarter hotel sales increased 5.5 percent compared to the same quarter of 2013, generating $128.2 million in revenue. Hotel sales in 2013 for the same period were approximately $121.5 million in the STR report. “Our strong third quarter results underscore the great weather and high levels of participation during a variety of events, such as the Neptune Festival, Rock ‘n’ Roll Half Marathon and American Music Festival,” said Virginia Beach Convention & Visitors Bureau Director James B. Ricketts. “This is the third consecutive quarter in which hotel sales have made strong year over year increases and we anticipate another record-breaking year in terms of hotel performance.” Year-to-date hotel sales through the end of September increased 5.9 percent, generating approximately $243.2 million in revenue. That’s considerably higher than 2012 – a record-setting year for hotel sales in Virginia Beach – which totaled approximately $230.9 million during the same nine months. Hotel sales in 2013 for the same period were roughly $229.7 million in the STR report. In year-to-date measurements compared to 2013, Virginia Beach’s hotel occupancy increased 3 percent. Average daily rate (ADR) increased 2.1 percent to $128.96, and revenue per available room (RevPAR) was up 5.2 percent to $77.16. Three months – February, April and May – produced the largest gains for Virginia Beach’s hotel industry. STR reported double-digit hotel sales increases, jumping 13.4 percent, 10.6 percent and 12.5 percent, respectively.
- February occupancy increased 6.9 percent to 41.4 percent while ADR increased 6.1 percent for the month at $78.38. RevPAR for the month also was up significantly by 13.4 percent to $32.48.
- April occupancy increased 6.8 percent to 56.8 percent while ADR increased 3.7 percent for the month at $94.57. RevPAR for the month also was up significantly by 10.8 percent to $53.73.
- May occupancy increased 6.6 percent to 64.9 percent while ADR increased 4.2 percent for the month at $118.01. RevPAR for the month also was up significantly by 11 percent to $76.59.
Virginia Beach Reports Strong Revenue Growth for Third Quarter As a leading revenue generator in Virginia Beach, visitor spending is a driving force for the City’s economy, creating jobs and generating economic impact. In 2013, visitor spending for Virginia Beach reached a record $1.3 billion. Local travel-supported jobs totaled 12,257 while local and state visitor-related tax revenues were over $108 million. The Virginia Beach CVB is responsible for promoting year-round leisure travel, meetings and convention business, amateur sports events, and international travel to Virginia’s most populous city.