Friday, July 13, 2007

Market Evolution

Hotel will have to buck trend

"The new Courtyard by Marriott Hotel would provide the extra rooms adjacent to the Grand Wayne Center city officials say they need to attract larger events.

But unless convention business is enough to sustain both the new hotel and the Hilton Fort Wayne, the two facilities could find themselves desperately competing for business and other travelers."

"City officials said developers White Lodging Services and Acquest Realty are assuming occupancy rates well above 60 percent for the new facility. And given the importance of the hotel to the rest of Harrison Square, which includes a new baseball stadium, retail and housing, large numbers of rooms cannot sit unused."

"The new hotel would have to change the hotel occupancy trend in the Fort Wayne area. Occupancy rates on an annual basis have not risen above 52 percent since 2001, and for the most part have remained between 47 and 51 percent, according to data from Smith Travel Research Inc. Those figures include hotels in and around the city."

"Courtyard is considered Marriott’s upper-moderate-priced brand. It has limited services and is aimed primarily at business travelers, according to research by Reuters."

"Dan O’Connell, president and CEO of the Fort Wayne-Allen County Convention & Visitors Bureau, said the affordability of the hotel will be attractive. He said it is a fit for the Fort Wayne market, but the hotel will not be the same as many Courtyard by Marriott properties, which tend to be located in suburban markets or along interstates."


Dave MacDonald said...

I found some interesting data regarding occupancy rates seen by hotels with water parks. It appears they achieve rates 5%-30% higher than hotels without water features.

Details here