A New Report Says Guests Are Staying Away From Non-Casino Hotels

According to the Gulf Coast Hotel Motel Association, non-casino hotels struggled last year. A new report says hotels that don't have a casino attached to them sold just half their rooms. Occupancy levels haven't been at the 50% level since at least 1990.

Asher Travis runs several non-casino hotels. He said, "So many hotels with a lot of debt can't handle a 50% occupancy. So somewhere along the line, something is going to have to happen, whether the banks take them back or whatever. And I'm not predicting doom and gloom. It's just that it's the law of the land, if you can't pay your mortgage, somebody's got to take it. And at 50%, you might not pay your mortgage."

The Gulf Coast Hotel Motel Association report analyzed statistics from the 2000 calendar year. What the association found was that non-casino hotels not only lost customers, they lost revenue. Their average daily room rate fell to $57.39. That's a $7.00 drop from 1999.

Casino hotels also charged less for a room. Their averages fell from $72.66 in 1999 to just $61.96 last year. On the other hand, casino hotels stayed quite busy. The report says 88% of their rooms remained full. That's why overall, the coast hotel industry had a 75% occupancy rate. That adds up to more guests staying at coast hotels than ever before.