Latest Data Indicate RevPAR Rose In December

Preliminary data released today indicate that U.S. hotel revenue per available room in December rose 3 percent to 5 percent, compared with the same month a year ago, according to Henderson, Tenn.-based lodging industry consultants Smith Travel Research. Analyzing the positive results, lodging and gaming analyst Harry Curtis of JPMorgan Chase suggested that strong business travel demand, unusual at the end of the year, augmented strong leisure demand, which is more typical around the holidays.

The results bode well for 2004. Curtis expects monthly RevPAR in January and February to rise 2 percent to 3 percent year over year. Hotel company executives have predicted a strengthening of demand as the industry slowly emerges from a two-year downturn.