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

Powerlist: Law Firms

October 2014
Thursday, September 25, 2014
BY KIM MOORE

A conversation with leading partners at law firms in Portland and eastern Oregon, followed by October's powerlist.


Read more...

Shipping News

September 2014
Tuesday, August 26, 2014
BY JENNIFER MARGULIS

In 2012 The Dalles, a city of some 14,400 located 75 miles east of Portland and often seen as the poor cousin to adjacent Hood River, completed a massive project to revitalize its dock.


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...

Fast Food Slows Down

September 2014
Tuesday, August 26, 2014
BY KIM MOORE

The ubiquitous fast-food restaurant may be on the decline.


Read more...

The Backstory

October 2014
Thursday, September 25, 2014

In our cover story this month, Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, discuss their rapidly growing businesses and Portland’s red hot food scene. The conversation provides an interesting lens through which to explore trends in the grocery store and restaurant sectors.


Read more...

Measure 91: What Oregon Businesses Need to Know

Contributed Blogs
Wednesday, October 15, 2014
91 thumbBY DIANE BUISMAN

Some common misconceptions employers have about marijuana.


Read more...

100 Best Nonprofits to Work for in Oregon [VIDEO]

News
Thursday, October 02, 2014

Screen shot 2014-10-02 at 11.17.21 AMMore than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.


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