June And July Hotel Rates To Jump In Key Cities

May 25, 2005

Hotel rates in seven U.S. gateway cities are projected to increase an average of 10.8 percent in June and 6.4 percent in July, compared to the same months in 2004, according to projections made today by JP Morgan Chase. The data is the latest evidence that buyers can expect stiff rate negotiations for 2006 in the markets where they are likely to have the greatest volume.

"July marks the 12th straight month that our rate survey has shown pricing power of 6 percent or more," said JP Morgan Chase analyst Harry Curtis.

For June, Curtis projects the strongest rate growth in Atlanta, Los Angeles and New York, with each city rising more than 20 percent from June 2004. Boston and Chicago are expected to perform strongly as well, with June rates rising 18.4 percent and 16.6 percent, respectively. Chicago's performance marks the start of a turnaround for that city, where demand has been soft for 2004 and early 2005, reflecting a dearth of citywide conventions.