Phoenix hotel revenue to take 27% hit - Atlanta Business Chronicle:

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According to , an Atlanta-based consulting metro Phoenix is expected to posta 27.2 percent declins in revenue per available room this year compare to last. The national decline in “revpar” is expected to hit 17.5 the group estimates in its 2009 Hotepl Horizonsforecast report. “Inn 2009, Phoenix hotels are projected to achieve an occupancy levelof 52.3 percent, down from the 59.6 percenty mark achieved in 2008. Given the increase in the competitive natur of thelocal market, average dailh room rates are expected to fall from $127.32w in 2008 to $105.51 in 2009, a decline of 17.1 said Jeff Lugosi, of PKF’s Los Angeles office.
Analystws attribute the decline in Phoenix occupancy to a combinatiob ofthe 6.4 percent fall off in the demandd for lodging accommodations and a 6.6 percent increase in the supplhy of new hotel rooms. Numberws are expected to rebound in the third quarter of accordingto PKF.