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Hotel Room Discounting Appears to be Coming to an End,
Particularly for Upper End Hotels


By Lori Weisberg, The San Diego Union-Tribune
March 22, 2011

Sustained bad news for the hotel industry is finally giving way to much rosier forecasts for the year ahead, as hotels both locally and nationally can expect growth in overall revenues, as well as the all-important room rate, according to a new report from PKF Hospitality Research.

While continued discounting as a way to fill empty hotel rooms led to a more than 2 percent decline in the average room rate last year in San Diego County, that’s expected to reverse course this year with a more than 5 percent increase, PKF reports.

With hotel occupancies also on the rise, San Diego County properties can expect an 8.3 percent increase this year in revenues per available room, the industry barometer for measuring a hotel’s financial health. That’s a bit better than the 7.1 percent growth expected for the nation as a whole.



Upper-end hotels, like The Hotel del Coronado, are expected to see healthier revenues this year than their lower-tier counterparts

For the rest of the story please visit:
http://www.signonsandiego.com/news/2011/mar/21/hotel-discounts-appear-to-be-coming-to-an-end/


Contact:

Lori Weisberg, Staff Writer
San Diego Union-Tribune
350 Camino de la Reina
San Diego, CA  92102
619-293-2251
lori.weisberg@uniontrib.com


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