Local Hotel Market Ends Year Divided

As previously reported in GlobeSt.com, the overall market's occupancy rate ended at 61% compared with 60.9% in 2002, according to the report by Horwath Horizon Hospitality Advisors LLC/Montgomery & Associates. But a closer look at the submarkets, saw a huge shift in some areas from the previous year.

For example, the south hotel market boasted a 59.9% occupancy rate in 2003, compared with a 50.6% occupancy rate in 2002. And it out-performed 2002, even though in December its occupancy rate was only 69.34%, compared with 88.21% in December 2002.

The year-to-date average room rate in 2003 along the south corridor was $79.96, compared with $86.40 in 2002.

The north sub market, by contrast, had a 49% occupancy rate in 2003, down from the 55.2% in 2002. And the year-to-date average room rate was relatively flat at $67.94 last year, compared with $68.64 in 2002.

Across the market, Downtown, South, Southeast and Stapleton did better in 2003 than they did in 2002 in terms of occupancy.

The North, Northwest, Southwest, West and DIA areas had lower occupancy rates in 2003 than in 2002.

Many of the markets were declaratively close. For example, the Downtown occupancy rate in 2003 was 64.8%, compared with 64.6% in 2002. The average room rate downtown last year was $99.26, compared with $96.68h in 2002.

The average occupancy rate at Stapleton was 62.5%, compared with 58.6% in 2002. But the average room rate near the former airport nose-dived to $49.29 from $55.07.

The average occupancy rate around Denver International Airport was 67.2% last year, compared with 70.6% in 2002. The average room rate around DIA rose slightly to $79.42 per night from $77.57 in 2002.

The average occupancy rate for the entire market peaked in 1997 at 72.5%, according to Montgomery. However, thousands of new hotel rooms have been added to the market since then, Montgomery notes.