Denver Hotel Rates Steady

<H1>Denver Hotel Rates Steady</H1><H3>by Rowland Stiteler</H3><I>Denver </I>- Hotel occupancy is up in Denver these days, but that may not necessarily spell bad news for budget-conscious travelers.

Industry analysts say the increased occupancy rates have spawned a hotel construction boom in Denver, and the resulting inventory increases should hold rates down.

Jim Hire, a Denver hotel consultant, said as many as 20 hotels could go up in the metro area over the coming year, increasing room inventory by about 20 percent. Most of the new hotels being developed will offer rooms in a price range of $45 to $75 a night, he said.

Last year Denver hotels hit an occupancy rate record unequaled in the past decade-72.5 percent. The average room rate climbed to $71.44 in 1995, up from $56.38 in 1990. Hire said the occupancy rate had triggered the availability of capital to build more hotels, and that the increased inventory would eventually put downward pressure on rates. For the remainder of 1996, however, local experts expect continued upward pressure on rates because of a glut of business from an unusual source-the change of venue that will bring the federal trial of the Oklahoma City bombing suspects to Denver. The success of Denver's six-year-old convention center also has generated new hotel customers, according to analysts.

Among the hotels being renovated is the Inverness Hotel & Golf Club, which has launched a $5.8 million upgrade. The hotel, which features 302 guest rooms and a 60,000-square-foot meeting center, will renovate guest rooms, common areas and restaurants over the next five years, with about $2.8 million of the renovations scheduled for the coming year.