Hospitality Industry Hangs On

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Los Angeles County’s hospitality industry is leveling out but remains an important part of the economy, according to a recently released report, the Pasadena Star-News reports.


Los Angeles County is nearing stabilized occupancy at 75.1 percent in 2006, a 0.6 percent increase from 2005, according to a survey released by Ernst & Young.


In recent years, occupancy had been increasing more rapidly – rising from 67.4 percent in 2003 to about 74.6 percent in 2005.


Overall occupancy levels in Los Angeles are expected to experience minimal growth in 2007.


“Demand is not growing as dramatically as in the past, but it’s still increasing and continues to do well,” said Troy Jones, senior manager for the hospitality advisory services group of Ernst & Young.


The hotel sector declined after Sept. 11, but has rebounded nicely in the past few years, he said.


“We are well along our way in the cycle, but what makes this cycle unique is we haven’t had a lot of new supply materialize,” he said.


A limited amount of new projects is good for existing hotels, he said.


The average daily room rate in Los Angeles County increased 9.6 percent to $114 in the county, and the revenue per available room, or RevPAR, increased 10.2 percent to $86.


Read the full Star-News story

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