Revenue Improving in Ailing Hotel Sector
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The U.S. hotel industry posted its best week since the terrorist attacks, leading analysts to say the worst might be over for a sector seeing its worst decline in a decade.
The latest data from Smith Travel Research were all the more encouraging because they followed several weeks of stagnation in the sector and came against tough comparisons from the year-earlier period, analysts said.
According to Smith Travel, hotel room revenue for the week ended Nov. 10 was down 13.7% from the same period a year ago, a significant improvement from the 18.8% decline the week before.
Although business is still well off from year-ago levels, many analysts had said before the terrorist attacks that revenue per available room could be down as much as 10% in the fourth quarter due to the slowing economy.
Room revenue was down 6% in July and 4.6% in August. At the depths of the travel crisis, room revenue was down as much as 45% from year-ago levels.
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