Hotel Turnaround a Year Away, Study Finds

ATLANTA-Hotel revenues will be in the basement for another year at least but the lodging industry will rally in 2003 and 2004, boosting revenues per available room to record levels, according to new joint research by Atlanta-based Hospitality Research Group and Torto Wheaton Research of Boston.

Markets that may be hit the hardest are Boston, Dallas, Honolulu, Los Angeles, Miami, Phoenix and Seattle.

Until the turnaround occurs, occupancies at full-service hotels will average 63.5% and at limited-service properties, 60.9%, the lowest levels since the 1991 Gulf War. The industry generally considers 65% occupancy as the break-even point at most properties.