Hotel Guests Are Fewer, But They’re Paying More

Occupancy rates at the larger local hotels dropped the first two months of this year compared to last, but not enough to prevent hotels from raising room rates slightly. Occupancy rates dropped from an average 65.2% in January and February last year to 62% this year, said Pannell Kerr Forster, an accounting firm and hotel consultant. Room rates rose from $67.88 last year to $69.89, according to the firm. The strongest region for occupancy rates was the southern part of the county, where rates were 67.4% through February. That was a drop from last year’s 71.7%. The strongest gain in average room rates was in the Newport Beach/Airport area, where the average room rate hit $77.96. It was $73.48 last year.

HOTEL BUSINESS IN ORANGE COUNTY

Average Daily Occupancy % Room Rate Region 1988 1987 1988 1987 Anaheim Area 66.7% 67.3% $68.72 $67.18 Airport/Newport Beach 68.5% 69.1% $77.37 $72.21 North County 61.8% 66.7% $46.02 $47.04 South County 71.1% 72.7% $77.04 $78.94 Total 67.1% 68.0% $70.46 $67.84 Year to date Anaheim Area 61.0% 64.3% $67.25 $66.51 Airport/Newport Beach 64.5% 66.9% $77.96 $73.48 North County 56.6% 62.4% $45.92 $46.92 South County 67.4% 71.7% $76.59 $77.00 Total 62.0% 65.2% $69.89 $67.88

Source: Pannell Kerr Forster