Hoteliers Feel Fulfilled as Occupancy, Rates Rise
Orange County hoteliers started off 1997 the way they ended 1996, with strong occupancies, higher room rates and plenty of optimism about the year ahead.
Nearly 66% of the county’s hotel rooms were filled in the usually slow month of January, up from 60.5% in the same month a year ago, according to a study by Los Angeles-based PKF Consulting.
Business in South County was particularly brisk. January occupancy in the county’s southern hotels reached nearly 71% in January, up from 52.6% in January 1996.
John Dravinsky, general manager of the Ritz-Carlton hotel in Dana Point, said strong corporate meeting business in January offset the seasonal slowdown in leisure travel at his 393-room property. He said both business travelers and vacationers are spending on the “extras” again, which helped push his January revenue numbers 42% above those of January 1996.
“Everything is hitting,” Dravinsky said. “Guests are buying more golf shirts, more jewelry. They’re making more phone calls. There is a lot of confidence in the business climate.”
Anaheim, the county’s largest hotel market with 18,000 rooms, showed only a slight gain in January occupancy with 64.8% of the rooms filled, up from 63.1% in January 1996.
Still, city hoteliers had reason to celebrate as the average room rate climbed to $98.28 in January, up 9.1% from the same period a year ago.
Room prices in Anaheim were sluggish throughout much of 1996 even though demand for rooms was high. Industry experts said that’s because many innkeepers during leaner times had locked themselves into long-term contracts for tour group business, which is discounted substantially compared to rates for walk-in guests.
As those contracts expire, Anaheim hoteliers are commanding higher prices for their rooms from tour groups, conventioneers and vacationers alike.
“The increases are long overdue,” said Jeff Morse, general manager of the Anaheim Sheraton. “The hotels here were underpriced for the longest time.”
The countywide average room rate was $91.21 in January, up 8.8% from January 1996.
Hotel business near John Wayne Airport continues to surge along with the region’s economy. Nearly 70% of the rooms in the airport area were filled in January, up from 61.6% in the same month a year ago, while room rates surged 11.8% to an average of $86.62.
“We’ve been sold out five to six nights a week,” said Margo Repta, general manager of the 253-room Marriott Suites Costa Mesa. “The business traveler is back with a vengeance.”
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Hotels Are Hot
January was a good month for Orange County hotels. Daily average room rates and occupancy rose countywide. Rates around John Wayne Airport increased the most; the largest increase in occupancy occurred in South County. January’s average daily rate and occupancy, by region:
*--*
Average rate Occupancy 1996 1997 Change 1996 1997 Change Anaheim $90.11 $98.28 9.1% 63.1% 64.8% 2.7% Airport area $77.47 $86.62 11.8% 61.6% 69.4% 12.7% North County $64.62 $68.62 6.2% 49.8% 59.2% 18.8% South County $86.13 $91.75 6.5% 52.6% 70.7% 34.4% Countywide $83.83 $91.21 8.8% 60.5% 65.7% 8.7%
*--*
*****
Good Start
January’s countywide average rate and occupancy were the highest in five years:
(Please see newspaper for full chart information)
Average rate:
1993: $76.48
1997: $91.21
*
Occupancy:
1993: 62.4%
1997: 65.7%
Source: PKF Consulting
Researched by JANICE L. JONES / Los Angeles Times
