Area Hotel Market Shows Improvement

In July 2003, the occupancy rate was 73.8%. In the first seven months of the year, the occupancy rate stood at 62.1%, compared with 60.2% through July of 2003.

The average room rate, however, fell slightly to $84.81. And year-to-date, the average room rate was $82.57, compared with $84.29 during the same time period in 2003. Benton says hotel owners are dropping rates to increase occupancy, but as demand continues rates will rise, too.

However, he tells GlobeSt.com he is surprised room rates, and occupancy rates for that matter, weren't a bit higher in July. "It will be interesting to see what happens in August," he tells GlobeSt.com. "Will we get more of a bump? I don't know."

The report shows Downtown Denver, with 158,890 available room rates, has the highest room rates at an average $122.75. It was the only submarket to break the $100 mark in July. However, its occupancy rate of 78.7%, although better than the overall average, was bested by several other submarkets.

The Denver International Airport had the highest occupancy rate at 86.3%. The 58,001 hotel nights near DIA had an average room rate of $78.74.

Boulder, with 52,421 available room nights, had the second highest occupancy rate at 84.5%, with an average room rate of $98.35, the second highest in the metro area. The 73,536 hotel nights near Stapleton had an average occupancy rate of 83.6%, with an average room rate of $63.06. The overall Southeast corridor, with 263,299 available room nights, had a 72.4% occupancy rate and an average room rate of $74.25.