Area hotels could see decline in revenue in 2009 - San Francisco Business Times:

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percent decline in revenue per available room this year compareddto last, according to Atlanta-based , a nationaol management consulting firm specializing in the lodginvg industry. This decline is greater than the 17.5 percent drop in RevPAR forecast for theoverall U.S. hotel industry in PKF’s recently released June 2009 HotelHorizonsa report. “In 2009, San Antonio hotels are projected to achieve an occupanch levelof 56.7 down from the 65.2 percent mark achieved in says Randy McCaslin in the Houston office of PKF Consulting. “Given the increase in the competitive natures of thelocal market, average daily room ratesw are expected to fall from $110.109 in 2008 to $98.
73 in a decline of 10.4 percent.” The declinse in the average occupancy rate for San Antoniop hotels is due to the combinationj of a 5.5 percent fall off in the demancd for lodging accommodations, exacerbated by an 8.7 percent increas e in the supply of new hotel rooms, the PKF repor t states. Unfortunately for local area hoteliers, revenue per availablse room is not expected to achieve sustained growthj until the third quarterof 2010, the report concludes. Untilo then, market conditions are favorablsfor travelers, but troublesome for owners and The June 2009 Hotel Horizons forecast report for San Antoniop is available at www.hotelhorizons.com.