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Arizona Hotel Room Rates Spike Amid Sagging Demand

PHOENIX-Tucson is the lone wolf of the Arizona cities, which have posted declines in hotel demand. Tucson's up 2.2% in occupancy while the statewide average has dipped to 67.8%, a drop of 0.4% below midyear 2000's rate. Room rates, though, are up statewide.

By D.J. Burrough | Updated on September 19, 2001

PHOENIX-Tucson has walked away the winner in hotel demand, which has dropped in most Arizona cities, including Phoenix where occupancy is 0.6% below midyear 2000′s tally. In turn, rooms are more costly, according to Warnick & Co. a Scottsdale-based hospital consulting and research firm.

The research firm’s midyear survey shows Tucson bucked the statewide slump by posting a 2.2% increase in its average occupancy for a high of 70.2%. The state average was 67.8%, down from last year’s 68.2%. Blame it on the summer heat and sagging economy, say the researchers.

Northern Arizona was the hardest hit, where occupancy dipped to 47.3%, down 8.7% from the previous year. Eastern Arizona occupancy was recorded at 50.7%, a 3.1% drop from midyear 2000. In the Valley, Tempe saw the biggest decline with a 3.1% fall for a 67.8% occupancy rate. West Phoenix escaped the downturn, posting a 2.5% increase for an average occupancy of 65.4% and was the city’s only section to do so.

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