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Hotels Discounting to Prop Up Occupancy

MINNEAPOLIS-Occupancy is down 5% to 15%, while room rates are down from 15% to 30%, according to a Marquette Advisors executive. St. Paul's Downtown market is holding up better than here.

By Jim McCartney | Updated on January 23, 2002

MINNEAPOLIS-The Twin Cities hotel market is starting to make a comeback after taking a dive as the economic recession and the Sept. 11 attacks decimated the travel industry. In the first weeks after the Sept. 11 attacks, occupancy rates were about half of what they were a year ago, says Jim Klas, a top officer at Marquette Advisors.

Since then, only Twin Cities hotels that have significantly discounted their rates have been able to keep their occupancy levels steady. Weekend deals abound, with many hotels cutting rates by $20 to $30 a night, he says.

Occupancy rates are 5% to 15% off what they would have been without Sept. 11, while rates are down anywhere from 15% to 30% at some hotels, he notes.

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