Higher Rates, Fewer Rooms at L.A.’s Inns

The average price for a hotel room in Los Angeles County in October jumped 9% to $109.16 over a year ago, while occupancy rates rose 4% to nearly 80% capacity in a sign the region continues to be a hot destination for tourists and business travelers.

The average year-to-date room price of $108.26 was also up 9% over the first 10 months of 1997, while occupancy for the same stretch grew by only four-tenths of a percent to reach 76%, according to PKF Consulting, which tracks the hospitality industry.

Those figures continue to underscore a yearlong trend of strong tourism to the area, said Michael Collins, executive vice president for the Los Angeles Convention and Visitors Bureau. “Room rates are approaching a double digit increase without having to pay a great price with a falloff in occupancy,” Collins said. “Those are just good, sound numbers for the economy.”

Domestic travel to the region, for business and pleasure, is brisk, Collins said. And although the number of visitors from Asia has dropped amid the economic turmoil there, international tourism rates have also remained healthy, he said, especially from Europe. “The effect of the Asia virus appears to be isolated,” Collins said.

Although high, occupancy rates in Orange County continued to fall in October, PKF reported, in further indication that massive construction projects in Anaheim, home of Disneyland and near to other big attractions, continued to cut into pleasure travel to the area, said Elaine Cali with the Anaheim/Orange County Visitor & Convention Bureau.

Orange County occupancy shrank from 73% to 72% capacity even as the average room price grew 9% to $105.02. Overall, hotel occupancy in Orange County has dropped 5% over the first 10 months of this year, compared with the same period last year.