Hotel occupancy a war casualty

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HENDERSONVILLE, Tenn. -- The U.S. hotel industry suffered a sharp drop in occupancy and average daily room rates the first week of the war with Iraq, compared with the same week last year, according to Smith Travel Research.

Also taking a fall was the revenue earned on occupied rooms, which fell 8.4% from a year ago to $51.76.

For the week that ended March 22, occupancy dropped 4.8%, while the average daily room rate fell 3.8% compared with the same period in 2002.

The country's most expensive hotels took the biggest hit, with room revenue at luxury hotels down 10.3%.

Luxury hotels in urban areas registered a revenue decline of 11.8%; New York's luxury hotels saw a 12.4% decline in revenue.

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