Occupancy, Room Rates at Valley Area Hotels Improve

San Fernando Valley area hotels appear to be making a comeback. Major Los Angeles conventions, higher travel activity and general improvement in the tourism industry helped to push occupancy rates at Valley hotels in July to 82.7 percent, the highest level since August 2006, said Carol Martinez, spokeswoman for the Los Angeles Convention and Visitors Bureau, or L.A. Inc. The average daily room rate for July was a $106.93, the highest in the Valley area since January 2009, she said. July data, released last month, is the most recent data available. Some industry observers and hotel managers say they expect to see evidence of further improvement in August data and through the remainder of the year. “This summer was strong for both the vacationer, and also we had a lot of citywide conventions,” Martinez said. “Even though a citywide convention might be based in downtown L.A., it impacts the whole city.” San Fernando Valley Occupancy Rate (July 2011): 82.7%Occupancy Rate (July 2010): 76.5%Increase: 8.1%Average Daily Room Rate (July 2011): $106.93 Average Daily Room Rate (July 2010): $101.60 Increase: 5.2% L.A. North Occupancy Rate (July 2011): 80.1%Occupancy Rate (July 2010): 73.4 %Increase: 9.1%Average Daily Room Rate (July 2011): $94.91 Average Daily Room Rate (July 2010): $101.60 Increase: 3.9% (Area includes Santa Clarita Valley, Antelope Valley, Malibu and much of the San Fernando Valley)Source: STR (Smith Travel Research) The Microsoft Worldwide Partner Conference brought more than 16,000 attendees to the Los Angeles Convention Center between July 11 and July 14, Martinez said. It was the city’s largest convention ever, she said. The Airtel Plaza Hotel in Van Nuys captured some of that business, along with business from other corporate and leisure travelers, said Dean Yamashita, the hotel’s director of sales and marketing. “That (event) was pushing a lot of rooms out to us,” he said. The hotel’s occupancy for July shot up to about 81.5 percent, compared to 52.3 percent in June and 55.4 percent in July 2010, Yamashita said. The hotel’s July revenues also rose by about $100,000 compared to the previous month and compared to July 2011. “August is a good month for us,” he said, noting an average occupancy rate of 78.5 percent. “September’s (also) looking pretty good.” Business likely will slow down in the fourth quarter, Yamashita said. “Booking windows are short, so it’s really hard to gage revenues, but our pacing is good,” he added. The region’s hotels showed strong year-over-year progress in July. The San Fernando Valley had an 8.1 percent increase in its average occupancy rate from July 2010 to July 2011, according to data from Hendersonville, Tenn.-based Smith Travel Research Inc., a travel research firm that tracks the hotel figures for L.A. Inc. That’s the third highest occupancy percentage increase in Los Angeles County for that month. “Los Angeles East” — which mainly covers the San Gabriel Valley — jumped by 11.3 percent year-over-year in occupancy, and “Los Angeles North” — which covers the Santa Clarita Valley, the Antelope Valley, Malibu and much of the San Fernando Valley — jumped 9.1 percent, the research shows. Michael Newcombe, general manager for the Four Seasons Hotel Westlake Village, said his hotel also has seen activity pick up. In July, the hotel had a 10 percent higher average occupancy rate and a 15 percent higher average daily rate compared to July 2010, Newcombe said. The month of August is also encouraging, and the hotel’s staff is now preparing for the fall and winter seasons, he said. “September and October are peak months for us corporately,” Newcombe said. He said the Tiger Woods annual golf tournament, scheduled to be held at the Sherwood Country Club in December, also is expected to bring a lot of business to the area. Nationwide, the hotel industry has shown signs of improvement. “Probably in the past eight to 10 months, demand has been increasing steadily, and average (daily room) rates, while not increasing as rapidly, are showing signs of recovery,” said Jeff Higley, vice president of digital media and communications at Smith Travel Research. He noted that about 106 million room nights sold this July, beating about 102 million sold in July 2010. While increases of that magnitude can’t realistically be expected to occur year-round, there is expectation that there will be continued growth going forward, he said.