O.C. Hotel Occupancy Dipped in August ‘Double Whammy’

Despite the recession and cooler-than-usual temperatures, Orange County hotels were 76.1% full, on average, in August, down from 78% occupancy in August, 1990, according to a monthly report released Friday by an Irvine consulting firm.

The showing was considered adequate in light of the continuing weakness in the economy, said Jim Burba, a principal for the consulting firm of Pannell Kerr Forster. But the showing was hardly strong enough to make up for the downturn that has gripped the hotel industry so far this year.

For the first eight months of 1991, Orange County hotels had an average occupancy of 65.8%, compared to 69.6% through the end of August last year. In addition, the average room rate was $71.31, up a meager 2.2% over last year’s $69.77.

The result, Burba said, is that Orange County hotels are getting caught in a “double whammy”--flat or falling occupancies and room rates that are outstripped by inflation. Many properties are at risk of failure, especially hotels that were bought or developed in recent years with the expectation of continued high occupancy.

In the Anaheim area, where hotels cater predominantly to vacationers and conventioneers, average occupancy was virtually unchanged in August. But for the first eight months of the year, the average occupancy in the area was 69.2%, down 6.2% from 73.8%.