Nov. 12--Wichita's downtown Hyatt Regency bustled Thursday and Friday with agribusiness equipment buyers and sellers. 

Across town at the Holiday Inn Select, municipal government managers from across the state met. 

Wichita hotels seem to be bucking a trend that has the industry nationwide predicting its worst financial performance in decades. 

So far this year, Wichita's hotel occupancy rate is ahead of last year's, even with a 10 percent drop in September, said Matt Kuzma, director of operations for the Wichita Convention & Visitors Bureau. 

Year-to-date hotel occupancy is 63.8 percent, compared with 63.3 percent last year. Only two conventions scheduled to meet here canceled after Sept. 11, Kuzma said, and one of them rescheduled for December. 

However, most of the activities taking place were scheduled last year. How current economic conditions will affect Wichita's convention and tourism industry remains to be seen. 

U.S. hotels will suffer the biggest decline in demand since the Great Depression of the 1930s because of a slowing economy and drop in travel since the September terrorist attacks, according to PKF Consulting, a hotel research firm. 

Nationally, revenue per available room, a measure of average occupancy and room rate, will fall 8.9 percent this year and 9.1 percent next year, according to the firm. 

Locally based Candlewood Hotel Co. cut 14 employees from its corporate staff to reduced overhead costs and streamline management, company officials said during an earnings report this week. 

The chain says it is out-performing similar hotel chains but still reported third-quarter losses. 

The company reported revenue per available room down 2.7 percent from the year-ago third quarter. That's compared with the lodging industry's revenue per available room decline of 11.2 percent, the company said, citing Smith Travel Research studies. 

Company president Jack DeBoer said half of his chain's clients drove rather than flew. 

Gerald Barrack, general manager at the Hyatt, said he expects a strong finish to the year because of holiday catering and conferences that groups booked years in advance in some cases. 

An annual agribusiness trade show taking place this week attracted about 10 percent fewer people, organizers said. 

Overall hotel revenue probably will be down 8 percent to 10 percent compared with last year, Barrack said. Other hotels across the country expect to finish 25 percent behind last year. 

What helps Wichita is that it's a regional draw, he said. Many of the hotel's visitors arrive by car, not airplane. So the fear-of-flying factor hasn't had a big effect. 

But there's more uncertainty when it comes for planning the new year, he said, because companies might scale back travel budgets and be less willing to pay for employees to attend conferences. 

"The first quarter doesn't look at strong," Barrack said. "That has to do with people being cautious." 

Michelle Stein, general manager at the Wichita Marriott, said the hotel's revenue could be down about 5 percent this year, although she was unsure whether the losses were because of the faltering economy or travelers' queasiness about leaving home after Sept. 11. It helps that most of the hotel's guests drive rather than fly to get there, she said. 

Economic recession and travel stigma contributed to declines, according to PKF and affiliate Hospitality Research Group. The firms found that in the first quarter of 2001, hotels saw an occupancy reduction of 0.2 percent. 

The firms predict a turn-around in the fourth quarter next year for full-service hotels. For limited-service hotels, the firms predict a positive growth in early 2003. Industry-wide occupancy levels are expected to return to 2000 levels by 2004. 

Andre Laz, general manager at Holiday Inn Select, Kellogg and Rock Road, said he also expects revenues for the hotel to be down about 10 percent for the year, but others in the company have suffered worse. 

"I think Wichita is kind of insulated," Laz said. "We're doing statewide groups. Travel by car is easier than by airplane." 

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(c) 2001, The Wichita Eagle, Kan. Distributed by Knight Ridder/Tribune Business News. CNDL,