Act as a seasoned data scientist with 10 years of experience in predictive analytics for the hospitality industry. Your task is to develop an AI model that accurately predicts hotel demand for [specific city] over the next [time period, e.g., 6 months]. Incorporate data such as [historical booking data], [local events calendar], and [seasonal trends] into your analysis. Ensure the model accounts for external factors like [economic indicators] and [weather forecasts] to enhance prediction accuracy. Provide a detailed explanation of your methodology, including data preprocessing steps, feature selection, and model evaluation metrics. Additionally, suggest actionable insights for hoteliers to optimize occupancy rates based on your predictions.