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November lodging figures reinforce the notion that Utah's economy is recovering but still has a long way to go.
Occupancy figures statewide last month averaged 49.6 percent, up solidly from 44.4 percent in November 2009, according to the Denver-based Rocky Mountain Lodging Report.
That marks the ninth consecutive month in which Utah hotels filled more rooms nightly than in the same month a year ago.
Hotels in Salt Lake County, location of almost half the state's inventory of rooms, had a 56.4 percent occupancy mark in November. That was 7.2 percent better than a year earlier, more than offsetting a slight increase in vacancies at county hotels in October.
"Occupancy is continuing to outpace last year, but nightly rates are holding steady," Michael Johnson, the Utah Hotel & Lodging Association's executive director, said Monday.
"Five percent is a great increase," he added. "It shows that people are committed to traveling. There have been a lot of questions about how much travel — including business travel — would return and when. With a jump that sizable, people and businesses are traveling."
But they aren't paying more to put roofs over their heads.
The average nightly rate at Salt Lake County hotels last month was $88.78, a nickel more than November '09. Statewide, the nightly rate fell by 69 cents, to $83.78. Year-to-date, hotels have charged about $1.50 less per night than in the difficult year of 2009.
"Occupancy has to be up and sustainable before we can see increases in rate," Johnson said, adding that although "there's no sign we're out of the hot water, all the forecasts look very good."
He is especially encouraged by a good start to winter, impressive snow depths contributing to improved bookings in mountain resort communities.
Increases there are important. So far in 2010, the average nightly rate at Utah's mountain resorts is almost $162. Statewide, the rate is closer to $93.
Johnson said conversations with a number of resort property owners convinced him that "their bookings for the first half of next year already have surpassed actual stays in that period last year — and we expect people to continue to book rooms for the next two to three months."
Ralf Garrison, director of the Mountain Travel Research Program, also offered upbeat numbers in his latest assessment of the industry.
November occupancy was up 14.4 percent and room rates were up 2.2 percent in a sampling of responses from 265 property management companies in 15 resort communities in Utah, Colorado, California and Oregon.
"With the winter's booking season well under way and the Christmas season imminent, there is some reason for holiday cheer about the 2010-11 winter," he said.
"Despite continued economic uncertainty and a buyer's market driven by price more than brand loyalty, positive signs do exist," Garrison added. "Good early season snow brought out strong early season visitor numbers."
The snow also stoked future bookings. Reservations in November for the rest of the ski season are up 7.5 percent over last year, Garrison noted.
All of which leaves the lodging association's Johnson guardedly optimistic.
"Certainly the first quarter of 2011 is looking very good, compared with last year," he said. "It's not going to be 2007, [before the recession]. But it's getting better."
Occupancy mostly up
Hotels in most areas of Utah filled more rooms on a nightly basis last month than in November 2009 (in parentheses):
Salt Lake County • 56.4% (49.2%)
Davis County • 50.5% (50.2%)
Utah County • 48.0% (48.3%)
Ogden • 45.1% (45.7%)
Logan • 47.5% (38.0%)
Cedar City • 38.0% (35.4%)
Mountain resorts • 24.9% (22.1%)
Elsewhere in Utah • 58.8% (48.9%)
Total • 49.6% (44.4%)
Source: Rocky Mountain Lodging Report