Boom at the Inn as Hotel Occupancy Rates Rise Sharply

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Following a stellar 2005, Los Angeles County hotels kicked off the new year with strong increases in occupancy rates and room prices in January.


Across the county, the average occupancy rate was 76 percent, up from 73.6 percent from the same period last year, according to data released by hospitality consulting firm PKF Consulting. The rate reversed course from December, when it hit 62.7, down slightly from 62.8 percent the same month the prior year.


The occupancy data could bode well for the upcoming year, with L.A. area hotels continuing to make gains after a 2005 that saw occupancy levels above those even in travel-heavy 2000. The January rate neared the 77 percent average for all of last year.


Airport hotels had the highest occupancy rate, at 82.7 percent, with Hollywood hotels closely behind with 82.1 percent for the month. Hollywood had the largest year-over-year increase in occupancy rate, jumping from 72.2 percent in January of last year.


Marina Del Rey hotels had the lowest occupancy rate in January, at 67.1 percent. Hotels in the Marina also experienced the steepest decrease in year-over-year occupancy rate, down from 73 percent in January of last year.


With the exception of downtown, all L.A. County submarkets saw room rates increase. On average, the room rate was $142 in January, up from $128 for the same month a year ago. The average room price was $126 in December.


Hollywood experienced the highest room-rate jump of all submarkets: It was up 24.6 percent to $172. Pasadena’s room-rate increase was nearly as high: It was up 23.5 percent to $186. The price of a room in downtown decreased 2.6 percent to $122.


Beverly Hills hotels remained the most expensive in the county in January, at $340 for a night’s stay. The second priciest was Santa Monica, at $240.


Hotels in the San Gabriel Valley, around LAX and in the I-5 Corridor/Whittier area were among the cheapest at $95, $92 and $91 per night, respectively.

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