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Cost of Staying at Hotels in U.S. Rising Quickly, Report Says

By Andrew LePage, The Sacramento Bee, Calif.
Knight Ridder/Tribune Business News

Jan. 14, 2005 -- The cost of a night's stay in a hotel is rising faster and in more markets across the nation as the hospitality industry continues to rebound.

In Sacramento, November's average room rate rose 4 percent over last year to $90.39, PKF Consulting reported Tuesday. However, the average hotel/motel occupancy rate of 65.7 percent was 2.3 percent lower than in November 2003.

Robust government-related travel to the Sacramento area helped insulate it from a national downturn in travel and hotel stays from 2001 to 2003.

PKF estimates that room rates rose by about 3.7 percent last year across the nation's 50 largest hotel markets and predicts rates will rise another 4.7 percent in 2005.

The submarket around San Francisco International Airport saw its average daily room rate rise nearly 8 percent, to $90.89, in November compared with a year ago.

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