By: Wayne Heilman in the Gazette | Feb 23, 2018
The Colorado Springs hotel industry kept its winning streak alive in January with the occupancy rate edging higher for a third consecutive month after five months of declines, according to the Rocky Mountain Lodging Report.
The 51.3 percent rate last month rose from 50.4 percent in January 2017 and was the highest rate for the month since at least 2000. The occupancy rate also increased from a year earlier in November and December after falling each month from June through October. The average room rate for January also increased 3.8 percent from January 2017 - to $96.15 - continuing a trend of increasing room rates every month since May 2016.
Doug Price, CEO of the Colorado Springs Convention and Visitors Bureau, said the U.S. "economy is still strong and people are still traveling. Effective year-round marketing and a positive national 'vibe' about Colorado Springs appear to be keeping local visitation at a high level. Hotel rates are still rising generally, which indicates continued demand."
He said occupancy levels are not expected to continue rising as several new hotels are under construction, which will push occupancy rates lower and slow room rate increases. However, Price noted that recent renovations at several full-service hotels, including The Antlers and Embassy Suites, and remodeling underway at others should help fill rooms.
Statewide, hotel occupancy fell in January to 58.2 percent from 59 percent in January 2017 and the average room rate edged up 1.8 percent to $168.33. Occupancy declines in the Denver area and at Colorado's ski resorts, where nearly three-fourths of the state's hotel rooms are located, more than offset gains in the rest of the state.
The Broadmoor and Cheyenne Mountain Resort are not included in the totals for Colorado Springs, but are part of a separate category - "other resorts" - with many of the state's ski areas. The occupancy rate for that category in January fell to 57.2 percent from 60.2 percent in January 2017, while the average room rate jumped 9.2 percent to $361.59.
