Good Year for Hotels

The L.A. hotel industry had a strong year in 1998, with the average cost of a room increasing 10 percent even though occupancy rates held steady.

PFK Consulting, which tracks the regional industry, reported that area hotels had an average occupancy rate of 74.41 percent in 1998, a slight increase over the 74.06 rate posted in 1997. Meanwhile, daily room prices jumped $8.56, on average, from the 1997 rate of $99.34.

Local tourism officials welcomed the numbers as an indication that the region remains a popular destination for travelers. In 1997, tourism was the third-largest industry in L.A. County, generating revenue of nearly $26 billion.

PFK Consulting also reported that Long Beach, with a 7.7 percent jump in occupancy rates, showed the highest increase of the region’s 16 submarkets.