Home Archives March 2009 There’s room at the inn as lodging industry feels drop

There’s room at the inn as lodging industry feels drop

| Print |  Email
Sunday, March 01, 2009
TheNines.jpg The Nines, a luxury hotel in downtown Portland, is running discount deals on room rates.

STATEWIDE Oregon’s lodging industry is taking a significant financial hit as consumers and businesses cut out unnecessary expenditures such as travel from their budgets.

The lodging industry — hotels, motels, resorts, and bed and breakfasts — has seen declines nationwide in occupancy rates and revenues per available room, as did Oregon, where occupancy rates fell from 61.3% to 58.4% last year, with occupancy rates especially low over the holiday season, according to Smith Travel Research.

“Beginning mid to late last fall, we’ve seen continual decreases,” says Jeff Hampton, president and CEO of the Oregon Lodging Association. “As with every industry, no one is immune to these times.”

Lower occupancy rates are being seen at luxury hotels and economy hotels. Even bed and breakfasts are at risk, adds Hampton. Occupancy rates aren’t likely to rebound soon. According to the Hospitality Outlook Survey published by DLA Piper, 62% of industry executives predict that rates will drop beneath the post 9/11 record low of 59%.

With Oregon’s hotel and motel industry earning $3.9 billion dollars annually — nearly half of the state’s $8.3 billion in tourism revenues — dwindling travel dollars are challenging state hoteliers to decrease costs without cutting quality and service.

Oregon-based Shilo Inns says it is picking up market share by attracting customers from all price points, including well-heeled consumers who are looking for good room values.

Portland luxury boutique hotel The Nines says it’s surpassing its expected occupancy rates, due in part to promotions. The Nines is offering a $99 room rate that is helping draw in customers not considered traditional luxury consumers, says general manager Frederick Kleisner.

But with lower than average winter travel weakening lodging revenues, hoteliers across the state are hoping for a better summer season.

“July is six long months away,” says Hampton. “But it can’t get here soon enough for our industry.”

NICOLE STORMBERG


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Startup or Grow Up?

September 2014
Tuesday, August 26, 2014
BY JON BELL

Startup culture is all the rage. Is there a downside?


Read more...

Attack of the Robin Sages

Contributed Blogs
Monday, July 07, 2014
070714 thumb linkedinfakesBY TOM COX | OB BLOGGER

Named after the 2010 experiment by Thomas Ryan, "Robin Sages" are fake social media profiles designed to encourage linking and divulging valuable information.


Read more...

Downtime

September 2014
Wednesday, August 27, 2014
BY JESSICA RIDGWAY

How State Representative Julie Parrish (House District 37) balances life between work and play.


Read more...

Molecular Movies

September 2014
Wednesday, August 27, 2014
BY LINDA BAKER

Dr. Chong Fang isn’t God. But the assistant professor of chemistry at Oregon State University is getting closer to figuring out how he put everything together. 


Read more...

Poll Wrap-Up

News
Friday, August 15, 2014

2014 NewPoll-report-newsletterthumbIn this week's poll, we asked readers: "Who should pay for the troubled Cover Oregon website?" Here are the results.


Read more...

Report Card

September 2014
Tuesday, August 26, 2014

Strong public schools shore up the economy, survey respondents say. But local schools demonstrate lackluster performance.


Read more...

South Waterfront's revenge

News
Thursday, July 24, 2014
MoodyAveBY LINDA BAKER | OB EDITOR

Remember the naysayers?  Those who called the South Waterfront aerial tram a boondoggle?  Those who rejoiced at the massive sell off of luxury condos at the John Ross and Atwater Place?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS