Hotel occupancy rate drops for February

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREOregon Ducks football players get stuck on Disney ride during Rose Bowl event160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! SANTA CLARITA Local hotel occupancy fell 9.3 percent in February compared with a year ago, a significant drop as Los Angeles County’s hospitality sector stabilizes after months of steady gains, an industry survey said. Hotels in the Santa Clarita Valley were 78.3 percent occupied in February, compared with 86.4 percent 12 months ago. The 9.3 percent dip was the highest in Los Angeles County, according to San Francisco-based PKF Consulting, an industry analyst. But average room rates in the valley were $119.45 up 11.9 percent from the same time last year and were 10.7 percent higher than January, confirming forecasters’ expectations for slight growth for the market for 2006. “Most of the growth will come from average daily rates,” said Tristine Lim, who coordinates the firm’s monthly report. Countywide, occupancy was 78.56 percent, down 0.8 percent from a year ago. The average room rate was $144.52 6.9 percent higher compared with last year. Lim said some downtown Los Angeles hotels were hit by convention cancellations, which cut into occupancy. “Usually in L.A., if there is a group that doesn’t come in this year, that affects the market as well,” Lim said. West Hollywood held the highest occupancy for the month at 84.4 percent 0.7 percent down from a year ago. West Los Angeles had the highest average daily room rates at $251.27 a 10.6 percent increase from last year. The consultant’s 2006 forecast predicts that the Santa Clarita Valley will see occupancy of 75.7 percent for the year a slight drop from the 81 percent last year. But that’s partly due to more supply from new hotels, including the 112-room La Quinta Inn & Suites and a 140-room Marriott Courtyard opening this year. The average room rate is projected at $111.32 a 3 percent increase from 2005, and the market continues to benefit from its “expanding business and residential base” and its proximity to Six Flags California, the forecast said. For Los Angeles County, the forecast predicts occupancy of 76.1 percent for 2006, with average room rates pegged at $141.63 a 5.4 percent increase from 2005. [email protected] (661) 257-5253last_img

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