A lacklustre economy is affecting Alberta's hoteliers, with occupancy rates down across the province.

Edmonton hotels have been hit particularly hard. They've seen occupancy rates drop more than six per cent year-over-year compared with 2009. Hotels in the city are operating at just 60 per cent of capacity.

According to statistics compiled by Travel Alberta, Calgary hoteliers are also experiencing a bit of a slump, with occupancy rates down 2.4 per cent compared with last year.

Prices are dropping, too. The average room in Edmonton is posted at $120 and $139 in Calgary. That follows steep discounts in Calgary hotels earlier this year, when Hotwire Inc. said Calgary lodgers slashed their nightly rates by 20 per cent in the first two months of 2010.

Edmonton hotelier Richard Wong, part of the marketing group Destination Hotels, said Alberta's $5-billion hotel industry is hoping things pick up as the economy improves. But the numbers are down across the province.

"The numbers are obviously a reality of what's happening in our industry today," he said. "We haven't come out of the recession that's hit the Alberta market. The leisure market is really taking a hit."

Visiting businessman James Reimer said he was surprised that he was able to get an Edmonton hotel room without having to book ahead.

"I walked in here, and they were able to give me a room walking in," he said. "You can also ask for a room upgrade, and they'll give that to you as well."