Austin hotel occupancy has hit 79.9% for June, up 7.1 percentagepoints over the same period last year, reports John F. Keeling,senior vice president of PKF Consulting in Houston. "The Austinhotel market is very robust and very strong," Keeling toldGlobeSt.com. "Every time we think it has peaked out, it surprisesus. There is a lot of new inventory and yet the city seems toabsorb it." He attributes the high absorption rate to Austin'sgrowing business sector, mostly high-tech. "We refer to it asSilicon Gulch," quips Keeling, who quickly adds "these newbusinesses are driving the hospitality sector."

Keeling says the average daily room rate in June has increased8.8%, to $92.11, with the CBD recording the highest rate at$132.12, up 8.4% over June 1999. Northwest Austin has experiencedthe largest percentage increase, 10.7% for the month. Of the utmostimportance, revenue per available room - a key measure of economicsuccess - has jumped 19.4% for the month to $73.59, with the AustinCentral Business District again leading the way with a 30% surge to$112.49.

The CBD represents the biggest jump in occupancy for the month,recording 85.1%, with second-place ranking going to the southernsector and airport areas, which have increased by 6.4 percentagepoints. Keeling says the northern corridor has jumped 4.8percentage points and the northwest, 4.4 percentage points.