Hotel room rates in the 50 biggest US markets, which rose an average of 3.7% in 2004, are expected to jump an additional 4.7% in 2005, according to projections from PKF Hospitality Research and Torto Wheaton Research.
The consultants’ report said the increases could be expected because of greater demand for rooms and smarter price-setting strategies by hotels.
Room rates in New York City, in particular, are expected to skyrocket; the hospitality researchers expect rates there to climb 13.7% next year.
“Occupancy levels in New York City have broken through the 80-percent barrier this year, thus making rooms not only more expensive, but also harder to come by,” said PFK researcher John Fox.
Room rates in Phoenix, Tampa, Los Angeles, and West Palm Beach also are projected to increase significantly in 2005.
Overall, PFK and Torto Wheaton expect New York City to again have the nation’s highest average daily room rate ($236.97 nightly), followed by Honolulu ($143.36), Boston ($132.86), San Francisco ($132.49), and West Palm Beach ($130.52).
Cities expected to have the lowest average room rates next year include Dayton, Ohio ($64.15), Albuquerque, N.M. ($66.26), Charlotte, N.C. ($67.98), Raleigh, N.C. ($70.11), and Memphis, Tenn. ($71.22).
Report by David Wilkening
