Hotel Market Showing Signs of Improvement

However, the average room rate fell to $81.53 from $84.93 in March 2003, according to the report.

But Bob Benton, principal of Robert S. Benton & Associates and author of the report, says that while the market has been showing signs of improving since mid-2003, March is the strongest indicator yet that the market is recovering.

A year ago March, the US was going to war with Iraq, which depressed the hospitality market.

In the first three months of the year, the average occupancy rate was 56.1%, compared with 53.9% in the first quarter of 2003. Year-to-date, the average room rate was $80.44, compared with $82.54 a year earlier.

Downtown showed an average occupancy rate of 64%, compared with 65.9% in March 2003, and the average room rate fell to $122.40 from $130.52.

However, the 57,557 hotel rooms near Denver International Airport boasted an overall vacancy rate of 78.7%, compared with 74.1% in March 2003.

The average room rate in March near DIA stood at $74.88, up slightly from $74.34 a year earlier.

Class A hotels along the southeast corridor had an occupancy rate of 57.6% and an average room rate of $84.26 in March, compared with 56.5% and $81.70, a year earlier.

Class B properties along the southeast corridor also improved, jumping to 54.9% from 50.9%. The average room rate rose slightly to $50.30 from $49.54.

The US 36 corridor also showed a big improvement. The average occupancy rate jumped to 57.9% from 48.2%. The average room rate, however, fell to $80.95 from $84.11 a year earlier.