"Next year will be kind of a boring year, but it could beexciting if corporate travels picks up," Keeling tells GlobeSt.com.He says that 2005 will look a lot like 2004 from an occupancy androom rate standpoint, however. "We'll do a bit better because ofimproving economic conditions, but with no sporting events, it willbe a wash."

Hotel occupancy for the metro market for the 10 months endedOctober 2004 was 62.8%, a 1.6% increase over the 61.2% for the sameperiod last year, according to PKF Consulting's most recent report.Moreover, the Houston market posted a hefty increase in both RevPARand average daily rates. RevPAR was $57.03 for the 10 months endedOctober 2004, an 8.8% increase over the $52.39 posted for the sameperiodlast year. The average daily room rate was $90.78, a 6%increase over the $85.61 posted for the same period last year,according to PKF.

Keeling points out that the Bayou City has managed to keep itsoccupancy and room rates up despite the increase in inventory. Overthe past 24 months, the city's hotel inventory has almost doubled,from 2,814 rooms at the end of 2002 to 5,292 rooms currently,according to Keeling. "Houston is doing okay. It's certainly not indistress," Keeling says.