SD hotel/visitation news

from today's San Diego Business Journal:

Demand for Rooms, Upgrades Ramping Hotel Rates Up Steadily
By CONNIE LEWIS - 5/21/2007

"Like a retailer at Christmastime, the Willis Bros. School of Surfing depends on the summer’s influx of business to make its year.

“In a three-month time period this summer we will do 80 percent to 85 percent of our business,” said Milt Willis, who owns the Del Mar firm with his identical twin brother, Mike. “It’s our boom season and we couldn’t survive without it.”

Neither could the county’s third-largest industry, tourism, which drew 32 million out-of-town visitors who shelled out $7.7 billion to stay in local hotels, visit attractions, dine in restaurants, party in clubs and bars, shop and gas up their cars in 2006, according to the San Diego Convention & Visitors Bureau. Some also spent $150 an hour for a private surfing lesson with one of the Willis brothers.

By all indications, the high tourism season, which kicks into gear Memorial Day weekend and ends Labor Day weekend, should be better than last, and the hotel industry should end the year on a high note."....

"Many major properties have sold within the last couple of years. Meanwhile, a host of those also underwent improvements and upgrades that will enable their owners to push room rates up.

For the 28 days ending May 5 — the latest report available from Smith Travel — the county’s hotels were operating at 73.3 percent occupancy, an increase of 2.5 percent from the like year-ago period.

On average, room rates stood at $139 a night, up 10.3 percent, while the amount of money hotels took in from the rooms, known as revenue per available rooms, averaged $102 — a hike of 13 percent from the same time frame a year ago.

In the first quarter, which is typically a slow tourism period, occupancy at the county’s lodges was 70.5 percent, down 2.4 percent from the first quarter of 2006. However, the average daily rate was up 6.3 percent to $135." ...

"Because 2,000 new rooms are expected to be added this year, the average overall occupancy rate is likely to flatten in 2007...."

for complete story see: http://sdbj.com/enews_article.asp?aID=88707545.948997.1476878.6617182.8687082.649&aID2=113597&lid=33&sid=&cID=Z