Hotel Revenues on the Rebound

After plunging as much as 45% after the Sept. 11 terrorist attacks, U.S. hotel room revenues rebounded strongly after three weeks to finish near pre-attack levels, according to new industry data. Revenue per available room, the industry benchmark, was down an average of 16.5% for the week ended Sept. 29, data tracking firm Smith Travel Research said.

But on a day-to-day basis, the size of the decline narrowed steadily throughout the week from a drop of 24.7% on Sept. 23 to just 6.5% by Sept. 29. By comparison, room revenue was down 4.6% for U.S. hotels in August, the last full month before the attacks.

The latest figures mark a major turnaround for the industry, which was thrown into crisis with the attacks leaving many people nervous about travel and flying. As a result, many hotels have warned that third- and fourth-quarter earnings will miss previous forecasts.