HENDERSONVILLE, TN? Although occupancy dipped slightly in the first half of 1999, on the whole the lodging industry performed well. Statistics released by Smith Travel Research indicate that average room rates and RevPARs made strong gains in the first half of the year, dismissing concerns among industry onlookers that a decline is imminent. In the first half of 1999, industry occupancy declined 0.8% to 63%. Average room rate grew 3.6% to $81.14, and RevPAR gained 2.8% to $51.11, said a report from Smith Travel Research. Industry room demand remained strong as well, posting a 3.4% increase in the first half of 1999, slightly better than the 3.3% demand growth rate for the same period in 1998. As a result of such demand growth, the industry is selling over 76,000 more rooms per day this year over last year, according to STR. Even though room supply increased 4.2%, up slightly from 4.1% in the first half of 1998, industry fundamentals remained strong enough for the majority of hoteliers to increase their profit margins. Mark Lomanno, president of Smith Travel Research, said he is hopeful that the gaps between supply and demand will diminish in the second half of the year, which will lead to better numbers at year?s end. For the second quarter of 1999, occupancy declined 1.2% to 66.5%. Average room rate rose 3.4% to $80.38 and RevPAR increased 2% to $53.48.
