Room for improvement.(Austin hotel occupancy declines)(Brief Article)(Statistical Data Included)

Cutbacks in business travel contribute to decrease in occupancy at Austin hotels

Austin's hotel industry is feeling the economic crunch as businesses and individuals alike limit their travel spending.

A first-quarter study by Houston research firm PKF Consulting found average occupancy in Austin hotels fell 7.3 percent in April compared with April 2000, from 79.9 percent to 72.3 percent.

Hotels in the Central Business District -- predominately full-service hotels -- saw the greatest drop, 12.3 percent. Northwest Austin, dominated by limited-service and extended-stay hotels, experienced a 9.4 percent occupancy drop and scored the lowest occupancy rate in the city -- 68.9 percent.

Industry observers say corporate cutbacks on …