Full year 2002 industry occupancy was 59.2 percent, down 1.0 percent versus 2001 according…
Full year 2002 industry occupancy was 59.2 percent, down 1.0 percent versus 2001 according to Smith Travel Research STR).
Average room rate declined 1.5 percent to $83.15 and revenue per available room
(REVPAR) — the combination of occupancy and average room rate and a key industry productivity measure — fell 2.5 percent to $49.24.
Industry room supply increased 1.8 percent in 2002 while demand (room nights sold) gained 0.8 percent. Full year 2002 room revenue slipped 0.7 percent to $77.5 billion.
In the fourth quarter of 2002, industry occupancy reached 53.9 percent, an increase of 2.91 percent versus fourth quarter 2001. Average room rate was $81.63 in the quarter, a gain of 2.8 percent and revenue per available room improved by 5.8 percent.
Hotel operators experienced another challenging year in 2002, said Mark Lomanno, President of Smith Travel Research. Assuming moderate economic growth, no major terrorist attacks on U.S. soil and a relatively quick resolution in the Middle East, we expect continued improvement of U.S. lodging industry fundamentals for full year 2003, Lomanno added.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
