Sponsored by George Fox University
Home Back Issues 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
Archives - March 2009
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

EPA Standards: A breath of fresh air for the region

News
Thursday, June 12, 2014
EPABY ANDREA DURBIN | OB GUEST BLOGGER

Last week, the Obama administration took an important and welcomed step in the effort to protect the health and well-being of all Oregonians by limiting carbon pollution from existing power plants.


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...

Updated: Disrupting innovation

News
Tuesday, July 08, 2014
070814 thumb disputive-innovationBY LINDA BAKER  | OB EDITOR

The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation  — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment. 

Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.


Read more...

Oregon Business wins awards

News
Monday, June 30, 2014

ASBPEOregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.


Read more...

OB Video: Oregon MESA

News
Thursday, June 26, 2014

ThumbOregon Business hosts an informal roundtable discussion about the Oregon MESA (Mathematics, Engineering, Science Achievement) program.


Read more...

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...

Who said we should sell in May?

Contributed Blogs
Friday, July 18, 2014
BullMarketBY JASON NORRIS | OB GUEST CONTRIBUTOR

Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”


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