And the traveling public didn't represent the same level of demand that it does today. There wasn't the understanding of economies of scale, and there wasn't the level of Wall Street interest we see now. D.C. Today, more than 42 companies and 14 REITs have a stock market presence. From '91 to '93, we saw the overabundance of inventory absorbed, and then '95, '96 and '97 were probably the best years of the current boom. Although that three-year period was remarkable, today's hotel roller coaster hasn't gained any significant downward speed.
Business is still good.
And the hotel industry sees a continued strong market, particularly in those segments and cities that serve large shows. Although industrywide occupancy levels have fallen from nearly 74 percent in 1997 to 72.8 percent in 1998 and an expected 72.3 this year, according to industry research firm PKF Consulting, convention hotel occupancy in 1999 is expected to grow by 1.3 percent. Some industry research firms, like Smith Travel Research and PricewaterhouseCoopers, report lower occupancy levels, 64.6 percent in 1997, 64.1 percent in 1998 and 63.5 percent this year. The discrepancy in numbers may be explained by methodology, PKF surveys hotels with an average of 220 rooms, while Smith Travel and PricewaterhouseCoopers survey a broader base of hotels. In the past, hoteliers reacted to falling occupancy levels by lowering room rates.