Smith Travel Reports Falling Hotel Occupancy, Revenue

U.S. hotel occupancy rates dropped 3.6 percent in the first half of 2002 over the same period in 2001, while revenues per available room, an indicator of hotel profitability, slipped 7.4 percent, according to results released today by the lodging industry tracking firm Smith Travel Research.

The greater drop in RevPAR suggests hotels lowered rates as a way to drive demand. For buyers, the six-month results confirmed earlier evidence that hotels are likely to be more disposed to negotiate favorable rates in the upcoming bid season than they have been in the recent past.