The report shows only two months in 2005 failed to better the same month in 2004. In December, the overall occupancy rate dropped slightly to 46.5% from 47% in 2005. And in March, the occupancy rate fell to 58.8% from 60% in March 2004.
The overall average room rate, in non-inflation adjusted dollars, set a record of $91.10 in 2005, compared with $84.42 in 2004. "Rates will probably rise again in 2006, but they won't increase by 7.9% like they did in 2005 form 2004," Benton tells GlobeSt.com.
The report shows that in every month in 2005, the average room rate was higher than the comparable month in 2004. The highest overall rates were found in Downtown, an average room rate of $131.17, compared with $121.50 in 2004, a 7.96% increase. The average occupancy rate stood at 67.6% in Downtown in 2005, compared with 65.5% in 2004. Benton says that because of all of the hotel construction in Downtown, including the new 1,100-room Hyatt across from the Colorado Convention Center, he expects that the average occupancy rate Downtown will likely drop to around 62% or 63% this year.
The report also shows that the entire south and southeast suburban markets had an overall occupancy rate of 62.2% in 2005, compared with 58.5% in 2004. And the average room rate rose to$67.80 compared with $62.12 in 2004.
Hotels around the Denver International Airport show an average occupancy rate of 71%, the highest in the metro area, but that is down from 74% in 2004. The average room rates around DIA, however, rose to $84.68 from $77.95 in 2004. Hotels around the former Stapleton International Airport, which is being redeveloped into a huge infill development by Forest City, showed a 67.7% average occupancy rate compared with 67.2% in 2004, while the average room rate rose to $66.62, compared with $60.90 in 2004.
Along the US 36 Corridor, the average occupancy rate rose to 64% from 62.2% and the average room rate rose to $93.06 from $87.91. In Boulder, the average occupancy rate fell slightly to 62.9% from 63.3% in 2004, but the average room rate rose to $101.47 from $95.48. Benton says he thinks the US 36 Corridor and the southeast suburban corridor will show occupancy and room rate improvements this year because they are not facing the same increase in supply as Downtown.
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