Hotel industry hopeful for rebound — Focus

Occupancy levels in downtown Boise’s Owyhee Plaza hotel took a welcome step upward in June, owner and General Manager John May said.

“It’s still not good. We’re still not where we were last year,” he said at the beginning of July. Through May, occupancy at the Owyhee Plaza was down by about 15 percent from the year-earlier period, he said.
Summer traditionally brings a boost in occupancy because of tourist travel and some sizable conventions and other events, May said.
“The economy in general has people stepping back,” he said.
At the Owyhee Plaza, the restaurant business is down and the catering business – tied to local meetings, seminars and banquets – has stayed steady, May said.
Owyhee Plaza’s business tied to conventions and other large events that attract people from outside the area is softer than it was a year ago, he said. “The numbers of events are not necessarily down, but the attendance level we are seeing is affected, probably due to gas prices.”
Chuck Everett, operations manager for Boise-based hotel chain AmeriTel Inns, said occupancy rates in the Boise area are down from a year ago, the total supply of lodging rooms is up, and more properties are under construction or planned.
“It’s not a good market and I don’t anticipate it getting any better” as to occupancy levels, he said.
Everett, citing Smith Travel Research data, said Boise MSA lodging occupancy was down by 9.2 percent year-to-date through May, and down 10.5 percent for the trailing 12 months. The average daily room rate (fee) was up less than 1 percent year-to-date through May and up less than 2 percent for the trailing 12 months. The total supply of rooms was up about 11 percent for the trailing 12 months.
AmeriTel operates in several geographic areas. “Some markets are holding their own, and some are seeing some problems – maybe not to the extent that Boise is, but we’re certainly seeing a flat market,” Everett said. “I don’t see any part of the lodging industry not being affected by the price of fuel.”
TownePlace Suites by Marriott opened Feb. 19 on South Capitol Boulevard in downtown Boise. Sales Director Jamie Zimmerman said business has been slower than anticipated – for reasons including that the 121-room, extended-stay hotel’s budget was based on a December opening, the economy has been softer, and the supply of rooms in the market has grown.
Zimmerman said TownePlace Suites downtown is positioned well for the long term. “Hopefully by 2009 we’ll start to see a swing in a positive direction again for hotels and the whole economy in general.”
The same ownership group recently opened a TownePlace Suites by Marriott in Meridian, near Eagle and Overland roads. A number of hotels and motels have opened in the immediate area in recent years.
Winston Moore, developer of the El Dorado business campus and Grand View Station retail center at Eagle and Overland, said hotels benefit business parks by providing convenient lodging for staff and clients of businesses in the parks, and by driving traffic to restaurants and shops there.
“A hotel is not a prerequisite, but it sure is a plus for a developer,” he said.