It appears to have been a happy holiday season for Colorado Springs hotels, with December’s occupancy rate hitting a 31-year high.

The 51.8% occupancy rate in December broke the record of 50.5% set in December 1996, according to the Rocky Mountain Lodging Report, an industry publication. December’s rate was up from 36.2% a year earlier, when travel was severely restricted by the COVID-19 pandemic.

Colorado Springs hotel occupancy hits pre-pandemic level

“This is pretty remarkable,” said Doug Price, CEO of Visit Colorado Springs. “I attribute that to mild weather in December and increased passenger numbers at the (Colorado Springs) airport,” which jumped to a 13-year high last year after Southwest Airlines added Colorado Springs to its route network in March with 13 daily flights to Chicago, Dallas, Denver, Las Vegas and Phoenix.

The average annual rate for 2021 reflected a major but not complete turnaround from 2020, showing that business travel and conferences still remain below pre-pandemic levels, Price said.

The 64.1% occupancy rate was well above the 50% average for 2020 but still down from 70% in 2019 and 71.1% in 2018. The local rate was well above the statewide and nationwide averages, though, and ranked as the nation’s 11th highest of the 165 markets tracked by hotel research firm STR.

Colorado Springs hotels continue recovery from pandemic in October

“These numbers show we are doing better but still not all of the way back. Business travel continues to lag,” Price said. “I am expecting 2022 to be another very good year for the local tourism industry.”

The average room rate in Colorado Springs for December jumped 21.6% from December 2020 to $107.73. The average for all of last year surged 27.4% from 2020 to $130.47 and was up 9.1% from 2019’s average. Local room rates rose faster in limited-service hotels at 31.% than they did in full-service properties — which attract more business travelers and conferences — at 24.5%.

Colorado Springs hotels’ recovery still shy of pre-pandemic levels

The lodging report doesn’t include The Broadmoor or Cheyenne Mountain Resort in its Colorado Springs hotels; those hotels are listed in a separate category for resorts.

The statewide occupancy rate rose in December from 35.2% in 2020 to 52.1% in 2021, with the highest rates in Glenwood Springs, Durango, Greeley and the state’s ski areas. The statewide occupancy rate for all of 2021 averaged 57.9%, up from 44% in 2020.

Colorado Springs hotel market ranked No. 2. in the U.S.

Occupancy in the Denver area rose in December from 33.1% in 2020 to 52.5% in 2021; it was the first time in 2021 that the rate in Denver exceeded the rate in Colorado Springs. Denver area occupancy rates for all of 2021 increased to 58% from 41.7% in 2020, with the highest rates in the midtown and Denver International Airport areas.

Average room rates statewide in December rose 28.9% to $185.45 and for all of last year were up 15.8% to $154.21. In the Denver area, average room rates in December jumped 33.5% to $112.17 and for all of 2021 increased 20.4% to $125.87.

Colorado Springs hotels continue strong summer performance

Nationwide, hotel research firm STR said occupancy increased in December from 36.7% in 2020 to 53.3% in 2021 but still remained slightly behind the December 2019 occupancy rate of 54.7%. The occupancy rate for all of 2021 improved to 57.6% from 44% in 2020 but remained well behind the 2019 rate of 70.2%.

Average room rates nationwide made a strong recovery in December, surging 36.2% from 2020 to $135.28, which was 6.7% higher than December 2019, STR said. The average room rate for all of 2021 increased 20.8% from 2020 to $124.67 but remained down 4.8% from the 2019 average.

Colorado Springs hotel occupancy falls to lowest level since at least 1986

The American Hotel & Lodging Association is forecasting that hotel occupancy rates and average room rates will approach 2022 levels this year, mostly driven by leisure travelers. Business travel is expected to remain down more than 20% for much of the year, with just 58% of meetings and events expected to resume.