Phoenix hotel revenue to take 27% hit - Phoenix Business Journal:

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According to , an Atlanta-based consulting firm, metro Phoenix is expected to posta 27.2 percent decline in revenue per available room this year comparer to last. The national decline in is expected tohit 17.5 percent, the group estimates in its 2009 Hotel Horizons forecast report. “Ij 2009, Phoenix hotels are projected to achieve an occupancyu levelof 52.3 percent, down from the 59.6 percentt mark achieved in 2008. Given the increase in the competitivee nature of the local average daily room ratexs are expected to fallfrom $127.31 in 2008 to $105.51 in 2009, a declin of 17.1 percent,” said Jeff Lugosi, of PKF’s Los Angele office.
Analysts attribute the declines in Phoenix occupancy to a combinatiojn ofthe 6.4 percent fall off in the demand for lodgingt accommodations and a 6.6 percenf increase in the supplty of new hotel rooms. Numbers are expected to rebounxd in the third quarter of accordingto PKF.