Colorado Springs hotels skidded to their worst month in more than a year in November as occupancy levels and average rates fell, according to the Rocky Mountain Lodging Report.
The occupancy rate, a key tourism measure, dropped to 56.6 percent in November from 59.2 percent a year earlier. Just 53.8 percent of the rooms in full-service hotels were occupied in November, compared with 61.5 percent for limited-service hotels. The decline was the second this year and the largest percentage drop since October 2017.
Despite the drop, occupancy for the first 11 months of 2018 rose to 73 percent from 71.3 percent on a year-over-year basis. Both full- and limited-service hotels reported higher occupancy during the period.
The slowdown also hit the average room rate, which fell 2.1 percent from November 2017 to $99.98. That’s the first drop since May 2016 and the largest decline since the average room rate fell 4.5 percent in April 2014.
The average rate for the first 11 months of the year was up 3.8 percent from a year earlier to $120.22 with rates in full-service hotels increasing more than twice as fast as limited-service properties.
Doug Price, CEO of Visit Colorado Springs, said the occupancy and average rate drops were a result of soft demand nationwide with little improvement expected this year.
The hotel industry picture statewide was similar. Both occupancy and average room rate fell.
Occupancy in November declined to 57.1 percent from 58 percent in November 2017, the third consecutive monthly drop and the fourth in the past five months. Occupancy in the first 11 months of 2018 was down to 70.6 percent from 71.2 percent.
The average room rate statewide fell 1.6 percent from November 2017 to $128.01, the biggest decline this year, but remained up 1.1 percent for the first 11 months of 2018 to $156.80.
The Colorado Springs numbers don’t include The Broadmoor or Cheyenne Mountain Resort, which are included in the “other resorts category with many of the state’s ski areas. Occupancy for that category was down in the first 11 months of the year to 54.2 percent from 55.5 percent in 2017, while the average room rate was up 5.8 percent to $280.58.