Occupancy levels and revenue continued to fall across the US hotel industry, with average occupancy now close to just 50 per cent.

According to industry analyst STR, industry reported decreases in all three key performance metrics for fourth-quarter 2009 in year-over-year measurements.

Cccupancy fell by 4.4 per cent to just 50.6 percent, average daily rate fell 7.6 per cent to US$95.79, and revenue per available room (RevPAR) decreased 11.7 per cent to US$48.50.

Despite the falls, Bobby Bowers, senior vice president at STR, remained confident that the industry was showing tentative signs of recovery.

"Fourth-quarter performance declines slowed, he said.

"Although RevPAR was still down nearly 12 percent, occupancy is beginning to show some traction; 11 of the top 25 markets experienced occupancy gains in the fourth quarter.

New Orleans, Louisiana, was the only market to report increases in all three key metrics while Oahu Island, Hawaii, reported the largest occupancy increase, rising 5.7 per cent to 74.0 per cent.

Houston, Texas, experienced the largest occupancy decrease, falling 27.0 per cent to 51.5 per cent due to the lingering effects of Hurricane Ike.

Five markets experienced RevPAR declines of more than 15 percent - Houston (-38.0 per cent to US44.91); Seattle, Washington (-18.0 per cent to US55.59); Phoenix (-17.2 percent to US$50.36); Dallas, Texas (-16.7 percent to US$40.50); and Chicago, Illinois (-15.9 percent to US$63.29).