Rates Up At L.A. Hotels

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The average daily room rate at Los Angeles County hotels was up 10.4 percent in December, capping a year in which the hotel industry continued to show strength with downtown, Hollywood, Beverly Hills and the LAX area among the biggest gainers.


The room rate rose to $143.05, up from $129.57 last December. The growth was driven by a continuing rise in occupancy levels, which rose nearly 1 point for the month to 62.6 percent. Revenue per available room a key industry metric that takes into account both rates and occupancy levels rose about 12 percent to $89.55.


As in past months among the biggest gainers were: Hollywood, where rates rose nearly 22 percent to $179.89, despite a 9 percent drop in occupancy rates; Beverly Hills, where rates rose 11 percent to $385.87, easily the highest rates of any county submarket; downtown, where rates rose about 7 percent to $113.11 on a 3 percent rise in occupancy levels; and the airport area, among the cheapest submarkets, where rates rose 12 percent to $89.37 on virtually flat occupancy levels.


The smallest gain was recorded in the San Gabriel Valley, which still saw room rates rise 6 percent for the month to $92.51.


The monthly gains ended a year that saw rents rise on average to $145.59, up 10 percent from 2005. The hotel industry both locally and elsewhere has been recording room rate and occupancy gains for several years after recovering from its post-Sept. 11 doldrums.

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