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Hotel Association Report Y2q1
Hotel Association Report Y2q1
SUPPLY
The new four star property remains on track for an April opening. Two 25 year old beach front properties
were purchased last November, primarily for their real estate property. The new owners have announced an
ambitious schedule to overhaul and flag the properties by June into high quality select service hotels.
While demand growth continues apace, there is growing concern that these developments may create
downward pressure on room prices beginning in Q2. We are watching these developments carefully and we
expect to be in a better position
DEMAND
Statistics shows that the turndown we had last year is over. Forecast for this quarter is giving occupancy
around 65%.
Leisure
Weekend bookings are expected to increase due to the successful development of a “big name”
entertainment schedule for the new civic center which opens February 1.
Business
Corporate
As a consequence of the turndown hotels did not signed with every corporate flat rate, but have an
agreement with some of them on dynamic rates. We think that some of the production of the corporate
segment will switch to Business.
Tour
The doubling of cultural, arts, and festival events last year was offset by similar initiatives in neighboring
areas. Demand is expected to remain at last years levels.
Large Group
Members report a sharp, but not unexpected, upturn in bookings for city wide conferences taking place in
Q2. These appear to be primarily regional conferences with 7-10,000 room nights. While rate negation is
evident, lower rates are offset by room night guarantees and expected high levels of incremental sales.
Small Group
This very interesting segment continues steady growth with and increased booking pace over last year...