VALLEY HOTELS ENJOY STEADY VISITOR RATES; ANALYST CITES BUSINESS STAYS.

Byline: Enrique Rivero Daily News Staff Writer

Travelers seem to like staying in the San Fernando Valley. Make that business travelers, who continue to be drawn by the Valley's booming economy.

While average hotel occupancy rates in June dipped in Los Angeles County - and took a more dramatic downturn in Orange County - the occupancy rate among Valley lodgings has remained relatively steady, even as room prices have jumped.

In fact, booking rates even showed a slight uptick. According to the Los Angeles Convention & Visitors Bureau, Valley occupancy rates increased to 75.5 percent in June 1998 compared with June 1997's 75 percent. Meanwhile, the average cost for a room jumped about 5 percent to $104.77 from last year's $99.59.

Meanwhile, the county as a whole saw occupancies drop to 74.9 percent, down from the prior year's 76.7 percent. Overall county room rates, meanwhile, increased nearly 8 percent to $104.71 from $97.15.

The news was worse in Orange County, or at least parts of it. For example, hotel stays in Anaheim dropped about 15 percent, said Melissa Mills, research coordinator for Los Angeles-based hospitality industry tracker PKF Consulting.

So what's so different about the Valley? It's the kind of traveler it attracts, Mills said. While markets like Anaheim rely on the tourist and convention trade, the Valley's hotel rooms are taken mostly by travelers here on business.

``Commercial guests stay in the San Fernando Valley more,'' she said. ``It's a different kind of visitor and there are fewer leisure visitors.''

There are a number of theories to explain the drop in overall hotel occupancies in the Southland, among them the effect of the Asian currency crisis, which has resulted in fewer Asians vacationing in the United States, she said.

Anaheim's hotel industry also has been hurt by the ongoing expansion of the convention center, she said. Groups that traditionally held their annual conventions in that city went elsewhere this year, including Los Angeles, she said.

Jack Kyser, chief economist for the Los Angeles Economic Development Corp., said overall occupancy rates in the county have been strong for the year. And he noted that 75 percent occupancy rates are good news for hotels.

``Anything over 75 percent occupancy is considered at capacity and 75 percent occupancy and above is very, very strong,'' he said. ``It means that many nights of the year you're going to sell out.''

CAPTION(S):

Photo, 2 Charts

PHOTO (Color) San Fernando Valley hotels like Universal City's pair are enjoying steady occupancy rates despite rising room prices.

Gene Blevins/Special to the Daily News

CHART: (1--2) LESS ROOM AT THE INNS

Vacancy rates have increased slightly in the Valley since 1993 while room rates have increased nearly 50 percent.

SOURCE: Los Angeles Convention & Visitors Bureau

Dionisio Munoz/Daily News