SALT LAKE CITY Occupancy rates here have dropped and still more properties are opening before the city hosts the Winter Olympics in 2002. The city has allowed too many hotel rooms to be built, said analysts, and consequently is seriously over supplied.
The big years for development were 1997-1999. In 1997, room supply jumped 8.2 points, reports Smith Travel Research. That year occupancy fell 8.8 points to 69.6%. In 1998, room supply leaped another 9.5 points and occupancy fell to 63.4%. By 1999, room supply was boosted by another 5.8 points and occupancy fell to 60.3%. In 2000, occupancy inched upward to 62.3%.
In 1994, there were 10,700 rooms in the Salt Lake City market and today there are 19,225 rooms that does not count the two major hotels currently being built: a Marriott with 370 rooms and Little America Grand with 750 rooms. (2/12/01)
SOURCE:Barron s Online