In March 2002, occupancy rates in the area including SeaTac International Airport and Southcenter Mall were down to 55.4% from 60.4% in March 2001, according to Bellevue-based Wolfgang Rood Hospitality Consulting. Room rates dropped accordingly, falling 5% from March 2001 to $77.02, according to the survey. Occupancy also fell statewide, sinking to 56.8% by the end of March 2002, which compares to 64.3%at the end of March 2001.

An occupancy rate of at least 60% in the hospitality industry usually means profitability; anything below that percentage usually means trouble. Likely factors in the submarket's struggle include the nationwide recession, last year's Sept. 11 terrorist attacks and the lingering local woes due primarily to layoffs at The Boeing Co. and in the high-tech industry.

Real improvement in the numbers aren't expected until the fourth quarter, according to the survey, as the economy rebounds, convention business picks up and executives begin traveling more frequently.