Forecast for hotel sector slips further - Austin Business Journal:

hegenefipa.blogspot.com
The company’s latest forecast paints a fairl y bleak picture for the rest of 2009 predicting occupancy rated across the country will bedown 8.4 percent this summert compared to last year, and down 8.4 percent by the end of 2009. The Tenn.-based company predicts the average daily room rate will bedown 10.4 percent this summere and 9.7 percent by the end of 2009. Revenue per available room is expected to bedown 18.7 percenf this summer and 17.1 percent by the end of 2009. Accordingh to the firm, a rebound of group travel will be key tothe industry’es recovery.
Group business will have to returhn to about 90 to 95 percent of its levels priotr tothe downturn, which will in turn generate transient before hotels once againh gain any pricing leverage. “On an inflation-adjusted it’s probably going to be longer than six yeares before the rates get back to 2007 saidMark Lomanno, president of Smith Travel Research. Last week Arizonaq released its tourism numbersfrom 2008, showin g significant weakness from the year While the average daily rate of a room in Arizonaa last year was $107.
76, a bit highedr than the national ADR of tourism figures released for the firs t quarter — typically the high tourist season — show the hospitality industry is still challenged by the downturn. Statewide, ADR was down 13.8 from $132.72 in first-quarter 2008 to $114.47 in first-quarterf 2009. In metro Phoenix, ADR sank 16 from $160.87 in first-quartedr 2008 to $135.08 in first-quarterd 2009. Because metro Phoenix boasts manyluxurious upper-tiert resorts, daily rates in the region are somewhat highe than statewide figures. For more on the state’sz tourism sector, .