For the most part, the story for this month is consistent with the trends for the first four months of 2018: record-high occupancy, strong demand growth and slowing construction trends. One clear difference was lower average-daily-rate growth in May, which based on the pace from the prior months we would have expected to be higher. 1. ADR monthly growth not as strong as prior months For the first four months of 2018, ADR growth climbed higher each month, exceeding 3% in both March and April. This seemed to point to an increase in pricing power, which we have been expecting given the sustained high occupancy levels in the industry. May ADR growth was still higher than in 2017 (+2.2%), but only by 0.4%, compared to a 0.8% increase over April’s ADR growth (+2.5% in 2017; +3.3% in 2018). Year-to-date ADR growth in 2018 is trending above 2017, but we saw a similar trend in the third quarter last year when ADR growth was at an unimpressive 1.4%. We will have to wait and see what happens with rate growth in the upcoming summer months. Get the full story at HNN