Sponsored by Oregon Business

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.”


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



More Articles

Storyteller in Chief: Power Player

September 2015
Wednesday, August 19, 2015

In 1996, after a 17-year career in the destination marketing industry, where I gained national standing as the CEO of the Convention & Visitors Association of Lane County, I was recruited by the founders of a new professional basketball league for women. The American Basketball League (ABL) hoped to leverage the success of the 1996 USA women’s national team at the Atlanta Olympics — much like USA Soccer is now leveraging the U.S. Women’s National Team’s victory in the World Cup. The ABL wanted a team in Portland, and they wanted me to be its general manager.


Mayoral musings

Linda Baker
Tuesday, September 15, 2015
091515-mayors-thumbBY LINDA BAKER

The 2016 presidential election is shaping up to be the year of the outsider, with Bernie Sanders and Donald Trump capturing leads in the polls and the headlines. In Portland, Wheeler vs. Hales is bucking the outlier trend.


Reader Input: School Choice

September 2015
Thursday, August 20, 2015

Which of the following would be most effective in reducing the cost of operating a public university in Oregon?


Down on the Bayou

October 2015
Monday, September 28, 2015

A Power Lunch at Zydeco Kitchen and Cocktails in Bend.


The 10 most successful crowdfunding campaigns in Oregon

The Latest
Wednesday, August 19, 2015
081915-crowdfundingmainBY JACOB PALMER | DIGITAL NEWS EDITOR

One of the hottest new investment trends has proven quite lucrative for some companies.


Storyteller in Chief: Brew Stories

October 2015
Monday, September 28, 2015

Over the years, many mentors have taught me lessons that have helped shape the way I view the world of work and our business.


Run, Nick, Run

October 2015
Monday, September 28, 2015

Controversial track star Nick Symmonds is leveraging his celebrity to grow a performance chewing-gum brand. Fans hail his marketing ploys as genius. Critics dub them shameless.

Oregon Business magazinetitle-sponsored-links-02