Growth in hotel industry expected; agency to focus on Valley meetings.

Hotel operators can look forward to another year of growth in 2006, although numbers won't be climbing as impressively as in the past couple of years.

In the Valley, occupancy rates through February were about 77.9 percent at the end of October, which represented about a 6 percent increase year over year, and average room rates were approximately $107.99, also a six percent increase.

"We've been in a period of steady recovery for the last couple of years, and we are pleasantly surprised by some of the numbers, frankly," said Chris Heywood. a corporate communications manager with LA Inc, the Convention and Visitors Bureau. "Moving ahead into 2006, based on the PKF lodging forecast we should basically see occupancy grow at about 2.6 percent, which is a nice percentage increase. Average daily room rates are going to be about the same, we don't anticipate a major up-tick there."

LA Inc. will continue to focus much of its advertising campaigns on the 58 percent of leisure visitors that drive into the city, which means a presence in the San Francisco, San Diego and San Jose newspapers and other advertising.

With a mind to increase meeting and convention business in the Valley, the group just finished its national sales meeting, which took place at the Warner Center Marriott and was attended by about 30 Valley sales professionals. LA Inc.'s direct line service manager, a relatively new position, will continue working to attract smaller meetings that typically book space at Valley hotels.

PKF, a hospitality research company based, is also tracking increased spa business at hotel properties, and noted that from 2003 to 2004 spa revenue grew 11.2 percent. While spas have been expanding in urban environments for the last few years, hotel companies like Marriott and Fairmont have started to brand and standardize their services, and that known spa brands are being brought into hotels for a competitive advantage.