Colorado Springs hotel occupancy declines for fifth consecutive month

 

Warmer and drier weather in July helped Colorado Springs hotels recover from four consecutive months of declining occupancy, according to the Rocky Mountain Lodging Report.

Local hotels filled 88% of their rooms last month, up from 87.5% in July 2018 and the highest occupancy rate since June 2018, when the Senior Open golf tournament at The Broadmoor boosted occupancy to the second-highest rate in 22 years. Precipitation in the Springs was down by more than half from July 2018, and the average temperature was 2 degrees higher, according to the National Weather Service.

Hotel occupancy falls for fourth consecutive month in June

The occupancy rate was 72% through the first seven months of 2019, down from 72.6% on a year-over-year basis, though occupancy at full-service hotels with abundant meeting space, restaurants and other amenities is slightly up during the same period. That gain was more than offset by a 2-percentage-point drop in occupancy at limited-service hotels.

The average room rate also recovered in July, increasing 5.2% to a record $147.45, ending two consecutive months of declines and replacing a record set in June 2018. The average room rate for the first seven months of the year rose 1% from a year earlier, to $120.89, with full- and limited-service hotels posting small gains from a year ago.

Wet May triggers down month for Colorado Springs hotels

Doug Price, CEO of Visit Colorado Springs, attributed the improvement to “great weather and heavy seasonal advertising” by the bureau during peak summer tourism.

July also was a strong month for the hotel industry statewide with occupancy increasing by the biggest percentage this year — 85.4% — compared to 83% in July 2018. Occupancy fell in June but has been up every other month in 2019; for the first seven months of the year it improved to 70.7% from 70.1% a year earlier.

Colorado Springs hotel occupancy slumps

The state’s average room rate also posted the biggest gain of the year, rising 3.4% to $176.31 after a slight drop in June. The average for the first seven months of 2019 was up 1.8% to $163.09.

The Broadmoor and Cheyenne Mountain Resort are not included in the totals for Colorado Springs hotels but are part of a separate category where occupancy and the average room rate are both up for the year.

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