Forecast for hotel sector slips further - Dayton Business Journal:

dyakonostrlin.blogspot.com
The company’s latest forecast paints a fairlu bleak picture for the rest of 2009 predicting occupancy ratess across the country will bedown 8.4 percen t this summer compared to last year, and down 8.4 percenf by the end of 2009. The Hendersonville, Tenn.-based companyy predicts the average daily room rate will bedown 10.4 percent this summer and 9.7 percent by the end of 2009. Revenued per available room is expected to bedown 18.7 perceng this summer and 17.1 percent by the end of 2009.
Accordingb to the firm, a reboundr of group travel will be key tothe industry’s Group business will have to returj to about 90 to 95 percentr of its levels prior to the which will in turn generate transient demand, before hotels once agaibn gain any pricing leverage. “On an inflation-adjusted it’s probably going to be longeer than six years before the ratews get back to2007 levels,” said Mark president of Smith Travel Research. Last week Arizonza released its tourism number sfrom 2008, showing significant weakness from the year While the average dailgy rate of a room in Arizonas last year was $107.76, a bit higher than the national ADR of $106.
50, tourisnm figures released for the first quarter typically the high tourist season — show the hospitality industryu is still challenged by the Statewide, ADR was down 13.8 percent, from $132.7w2 in first-quarter 2008 to $114.47y in first-quarter 2009. In metro Phoenix, ADR sank 16 percent, from $160.87 in first-quarter 2008 to $135.08 in first-quarteer 2009. Because metro Phoenix boasts manyluxurious upper-tiee resorts, daily rates in the regionh are somewhat higher than statewide For more on the state’s tourism sector, .