UShotels see downturn in occupancy and revenue

The occupancy of hotels in the USA was down by 11% on average this October compared with last, the American Hotel & Lodging Association announced.

Joe McInerney, chief executive, said that upmarket hotels were more badly affected than the midmarket sector.

He said some midmarket hotels had reported occupancy declines of just 5% against far more severe falls of 17% in some of the luxury hotels.

Hotels' income was even more badly hit, with upmarket hotels reporting falls in revenue per available room (revpar) of up to 18%, and even some midmarket hotels recording 10% drops.

But McInerney argued that the terrorist attacks of 11 September were not entirely to blame.

He explained: "You have to remember that 2000 was the strongest year ever for hospitality, so 2001's figures were bound to be lower."

McInerney said the key to persuading Americans to start moving again was to ensure "not only that travel is safe, but that it is perceived to be safe".