U.S. hotel industry recovering steadily if slowly, data show

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Despite increasing hotel foreclosures in California, the U.S. hotel industry is showing signs of a steady recovery from the recession.

That was the conclusion Monday of a financial report on the last three months of 2010 by hotel industry analyst STR Global of Tennessee.

The average fourth-quarter occupancy rate in the U.S. increased by 7% to 53.5%, compared to the same period in 2009, while the revenue per available room jumped about 9% to $52.59, according to the STR report.

For the entire year, the average occupancy rate nationwide increased almost 6% to nearly 58%, while the revenue per available room rose 5.5% to $56.47, the STR report said.

STR senior vice president Bobby Bowers said the improved numbers reflect a ‘steady climb to full recovery’ and predicted continuing improvements in the hotel business in 2011.

The industry was staggered by the recession, primarily by the drop in business travel over the last two years. As a result, hundreds of hotels in California, struggling to pay off loans for expansions or renovations, fell into default or were foreclosed upon.

-- Hugo Martin