The hotel industry suffered a 37% drop nationwide. SanFrancisco, with only 42% of its rooms occupied, was in the lead,suffering a 55.4% drop in occupancy for the week ending Sept. 22.This figure is based on comparison with occupancy levels from ayear ago.

With the exception of San Francisco, where significant room ratereductions were occurring way before the September 11 attack, mostCalifornia hotels have not had to lower rates. Instead hotels havechose to maintain their average daily rates, according to Ernst& Young.

The industry, suffering from lower corporate and leisure travellevels, will continue to experience losses in revenue andreductions in occupancy rates. But all is not lost, according to arecent Jones Lang LaSalle Hotel report, which says that there areboth risks and opportunities in this market change.

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