Hotel occupancy in the Phoenix area was down below 50% in May 2009 according to Smith Travel Research. The valley-wide room occupancy fell to 49.5% from 58.6% in May 2009, a 15.5% decline. The average decline among the 25 markets Smith follows was 11.9%. Three other cities, Dallas, Detroit and Tampa, had occupancy below 50% in May. Several factors have led to the decline such as the recession, a backlash against corporate travel and an increase in inventory in the Phoenix area. The room supply in greater Phoenix is up 7.1% from a year ago. In the last year, The Sheraton Phoenix Downtown, InterContinental Montelucia Resort & Spa and W Scottsdale Hotel were opened.

John Laub is the Chairman of the Phoenix CEO-CFO Group.

1. "Area Hotels See Dip in Occupancy, Revenue." Dawn Gilbertson. The Arizona Republic. June 23, 2009.

2."Phoenix Hotel Revenue to Take 27% Hit." Lynn Ducey. The Phoenix Business Journal. June 30, 2009.