Hotel occupancy in Vicksburg hit a three-year low in September, with just 44.5 percent of the city’s roughly 2,500 rooms rented during the month, according to Smith Travel Research.

Compared to regional, state and national averages, however, Vicksburg hoteliers may be faring worse than some, but they’re still doing better than most.

“It’s slow everywhere,” said Paul Patel, regional director of operations for Southern Hospitality Services, which operates four hotels in Vicksburg and others in Mississippi, Louisiana and California. “There aren’t any of our markets that are doing better than this.”

A dismal September dropped year to date occupancy rates in Vicksburg to 54.8 percent — down from 69.1 percent a year ago. Average daily rates through September have fallen as well, from $76.30 in 2008 to $71.03 this year. Those drops are due, at least in part, to the addition of six hotels and 500 rooms — a 25 percent expansion — since the summer of 2008, said Vicksburg Convention and Visitors Bureau Executive Director Bill Seratt.

“It’s certainly not good that we’re not filling up the new rooms, but if you take those out of the equation we’re basically filling about the same number of rooms as we were a year ago,” said Seratt. “And when you look at the numbers other regions are reporting or the statewide averages, we’re not doing too bad.”

Year to date occupancy rates in Vicksburg are slightly better — about a half of one percent — than the statewide average, but are off the nationwide average by about 2 percent. The only area in the state enjoying year to date occupancy rates higher than 60 percent is Biloxi and Gulfport, while the Hattiesburg, Meridan, Jackson and Tupelo markets are all reporting rates between 49.8 and 54.5 percent — all lower than those in Vicksburg.

Before the influx of new rooms in Vicksburg, local hoteliers were enjoying occupancy rates above 70 percent during peak months in 2008 and 2007. However, Patel said the influx of new rooms is not hindering the market as much as the still-lagging economy.

“People are just holding off on spending and not travelling,” he said. “We’re seeing it in every market we’re in, and most of them haven’t had the influx we’ve had here.”

A 3 percent tax is tacked onto every hotel stay in the River City. The Vicksburg Convention Center and Auditorium gets a 2 percent share of the tax, while the VCVB gets 1 percent, as well as a 1 percent share of food and beverage sales in the city.

At an annual meeting of the convention center and auditorium advisory board this week, executive director Larry Gawronski reported revenue from their share of the lodging tax actually eclipsed budget estimates for the first time in years — with $480,000 in collections compared to an average of $440,000 in recent years. The VCVB, meanwhile, has budgeted for a slight decrease in collections, but Seratt noted the bulk of their tax revenue comes from food and beverage sales.

Patel said business has picked up some in October, but not enough to leave him optimistic entering November and December — traditionally two of the slowest months of the year in the hotel industry.

“We’ve bounced back a little this month, but nothing compared to what it was a year or two ago,” he said. “I’m expecting things to get even worse, and there’s not much we can do about it. We just have to bear it, keep our rates as low as we can, keep our expenses in check and ride it through.”

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Contact Steve Sanoski at ssanoski@vicksburgpost.com