Posted: 21 Apr 2010 11:00 PM PDT

Orlando hotels had their best month in a long time in March, feeding hope that better times are ahead after two years of recession and slumping travel.

Almost three of every four hotel rooms were filled last month, the first time that has happened since July 2008. And that average occupancy was up more than 9 percent from March 2009 — the biggest such jump in almost four years.

"If I were running a hotel now, I would probably breath a sigh of relief and start thinking that maybe I'm getting out of the woods," said Scott Smith, a lodging instructor in the University of Central Florida's Rosen College of Hospitality Management. "People are traveling again."

Hotels across the local market reported improved results after months of slumping business and steep discounts: Average occupancy was up 16.4 percent in downtown Orlando, 15.8 percent on International Drive and 11 percent in south Orlando, according to the latest report from Smith Travel Research, which tracks the hospitality industry nationwide.

Guests started returning in numbers last month at the DoubleTree Hotel by the entrance to Universal Orlando, where the occupancy rate approached 80 percent, General Manager Bill Worcester said.

He and other hoteliers are now focused on the June opening of Universal Orlando's Wizarding World of Harry Potter, which they hope will spark a boost in leisure travel to the area for months to come. And the fall opening of a major expansion at the Peabody Orlando hotel, next door to the Orange County Convention Center, could give the area's convention business a lift.

"I think a lot of exciting things have happened in Orlando, not only on the parks side but on the hotel side," Worcester said. "And I think that's eventually going to be very good for us."

Although optimistic about the second half of the year, Worcester also thinks it could take the Orlando market a while to get back to normal. Last month's statistical gains, for example, were partly a result of March 2009 having been a particularly tough month for local hotels; historically, they often exceed 80 percent average occupancy in March, but they were still well short of that this year.

"Last year was nothing to write home about," said Smith, the UCF instructor, who is not connected with Smith Travel. But "with a very low [2009] baseline in comparison, at least we're heading in the right direction."

Experts have been saying they don't expect the hotel business to recover until at least the end of this year. But some local managers report activity picking up now.

"This second quarter we're already starting to see it," said Tony Silva, sales manager for the Wingate by Wyndham. "Some weeks are even double what they were last year."

Silva's hotel, near Orlando International Airport, got a measurable boost this past week from the volcanic eruption in Iceland: 55 percent of its rooms Tuesday were filled with international visitors stranded by the ash cloud that shut down air travel across most of northern Europe.

But leisure travel generally has improved, he said, and the hotel's group business is doing well.

"I'm seeing a good forecast," he said.

Hotels are still discounting their rooms to attract guests, though in March they finally managed to draw enough people with the lower prices to boost the bottom line: Revenue per available room, a function of both room rates and occupancy, and a key industry measure, was up year-over-year for the first time since May 2008. It rose 3.2 percent.

The average room price in Orlando continued to fall last month when compared with a year earlier, dropping 5.6 percent to $99.76. But the decline was not as steep as those in previous months, when hoteliers were cutting prices by as much as 15 percent on average.

Geographically, the south Orlando submarket had the strongest month overall, followed by the International Drive area. The west Kissimmee submarket, directly south of Walt Disney World, fared the worst, with a 1.4 percent decline in occupancy and a 12.3 percent drop in average room price.

Sara K. Clarke can be reached at skclarke@orlandosentinel.com or 407-420-5664.

More on Orlando hotels' trying times:

Hotel rooms in Orlando area still go begging

Cutbacks, recession take some of the shine off Green Lodging program

Want a $10 room? Hotels slash rates

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Hotels struggle to find lodging for stranded Europeans

Posted: 21 Apr 2010 01:02 AM PDT

News

Hotels struggle to find lodging for stranded Europeans

BY INGRID BROWN Senior staff reporter browni@jamaicaobserver.com

Wednesday, April 21, 2010

JAMAICAN hotels are struggling to find alternative accommodations for their guests stranded here because of the shutdown of airports across Europe, due to the eruption of the volcano Eyjafjalla in Iceland.

Wayne Cummings, president of the Jamaica Hotel and Tourist Association (JHTA), said a number of local hotels have had to move out stranded visitors, some of whom have run out of money, to other suitable locations to make way for arriving guests.

According to Cummings, while hotels have been working overtime to accommodate their guests as best as possible, they had to ensure that guests arriving from North America and other regions were accommodated.

"We have a contractual agreement with these new guests who are coming in, and so we have to say to our British clients 'we can no longer keep you', and show them the alternatives," Cummings told the Observer Monday.

"When it first happened we thought three days at the worst, but once people's money began to run out, we realise that we are in a crisis mode," he added.

He made it clear that some hotels were doing everything to facilitate the stranded guests, such as providing them with free phone calls back to their countries, as well as helping them with their laundry.

However, he said some guests were becoming increasingly frustrated as they were unable to get confirmations from British Airways and Virgin Atlantic on their departure from Jamaica.

He fears that if the situation prolongs, "we will have even more serious issues".

He, however, added that even when airlift begins it would take some time to clear the backlog of passengers stranded since the volcano forced the shutdown of Europe's airspace last Thursday.

The JHTA will, meanwhile, be seeking the intervention of the tourism minister, Edmund Bartlett, in the matter.

Cummings said, too, that hoteliers would like the airlines, embassies and high commissions to help shoulder some of the costs to host the stranded visitors.

"We are the ones shouldering the anxiety and that of our guests, and no one has indicated to us how to assist their nationals," he said.

He added that while some tour operators, like Virgin Holiday tour, had opted to pay for the extended stay of their passengers many others were not so generous.

According to Cummings, the way the matter is handled could determine the desire of guests to return to the destination for future holidays.

Monday, the World Travel and Tourism Council (WTTC) called on governments around the globe to intervene to protect the travel and tourism economy in light of continued travel disruption. The WTTC, in a release, said while public safety must be paramount, decisions must not be made lightly as they could have serious impact on the world's US$5,751-billion travel and tourism economy.

It was time for governments and organisations such as the United Nations, European Commission, G8 and G20, to re-examine the way policies that affect global travel and tourism are co-ordinated and implemented, said the organisation.

An important step forward, it said, would be the introduction of centralised air traffic control for the whole of Europe, which could reduce the need for blanket bans on flights in the future.

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COMMENTS (16)

Antonette W.
4/21/2010
While it is noble and humane to accommodate the tourists in their time of need, Jamaica should be very wise in handling the situation. If the tourists are becoming restless and angry, they should not be angry at Jamaica or Jamaicans, who are already struggling to survive. In the past, I have been stranded in foreign locales, from Hong Kong to India, to France and I was on my own. They gave away my hotel room in France and when I pleaded my case for them to accommodate me, they demanded for me to leave and threatened to have security forces throw me out into the streets like a vagrant. Had it not been for a woman, a total stranger from Israel who witnessed the incident, and decided to share her room with me that night, I may have had to sleep on the street. ANYTHING JAMAICA DOES FOR THOSE PEOPLE IS A FAVOR, NOT A DUTY. Their own countries have the means and should reach out to help them and not make them a financial burden to Jamaica. In the end they will still say JA was no good.

Richard Edwards
4/21/2010
None of these travellers had prior notice that their flights would be grounded by a vexed volcano . Many were caught off guard, but there is the British High Command Kingston, part of their job is to make sure that their citizens who are stranded in Jamaica without resources are cared for until they can leave. I certainly don't advaocate throwing them out in the streets, because of their inability to pay, but Jamaicans who find themselves in a similar position in foreign countries, UK included, don't get any special treatment from them, so I am not sure we have any such obligation to the Brits. The British Embassy should help. I concur with KB. Jamaica is a free country, who ever wants to visit may do so,others who choose not to, has the same rights, there is hardly any need to pacify persons, hoping that they will return to jamaica some day, and in any event how exactly has tourism change the economic landscape of Jamaica.
Richard Edwards NYC
betterlifeforjamaicans@yahoo.com

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Hotels slightly busier

Posted: 21 Apr 2010 06:48 PM PDT

LAYTON -- Hotel occupancy in Ogden and Davis County crept up in March, leaving hoteliers here excited for the future.

The hotel occupancy rate in Ogden increased from 59.3 percent last March to 60.3 percent this March, while in Davis County hotel occupancy for the same month went from 52.8 percent to 55.7 percent, according to the Rocky Mountain Lodging report released Wednesday.

Other than Salt Lake County, no area of the state had as high an occupancy rate as Ogden and Davis County, said Michael Johnson, executive director of the Utah Hotel and Lodging Association, based in Kaysville.

Johnson said the recent report is an indication things are headed the right direction.

"Occupancy leads rates. We have to get occupancy up before we can ever see an increase in rates," Johnson said.

Low rates are fantastic for travelers, Johnson said, but from a business standpoint the property owner has a business to run and is hoping to make money.

Other than the mountain resorts, like those in Park City, and the downtown Salt Lake City corridor, nearly every other segment of the state was up when comparing the March 2010 hotel occupancy rates with the March 2009 figures, Johnson said. In the mountain resorts room rates were down about $20 per night, while the downtown Salt Lake City corridor experienced a $10 dip in rates, Johnson said.

Some hotels had to sell rooms cheaper to get the occupancy rate they did, he said.

"Occupancy is up. (But) the rate is down," said Johnson, who anticipates occupancy will have to reach about 65 percent before room rates increase.

The March report is particularly promising, considering hotels' experience in 2009 and the last quarter of 2008.

Last year was a rough period on hotels across the state and nation, as well as internationally, Johnson said. But because of military visits to Hill Air Force Base, summer and business travel to the Wasatch Front, area ski resorts and Antelope Island, Davis County and Ogden were able to stave off some of last year's decline, Johnson said.

There is also news about more hotels to come.

Construction bids for the new Hilton Home 2 Suites to be built in Layton near the Hilton Garden Inn have been received, said Andy Pettingill, director of hotel operations for Western States Lodging, serving as the management team for the project.

Bids are promising, Pettingill said, but no contracts have been signed as they continue to negotiate.

Updated 7:16 p.m.

______________________________________________________

Hotel stays up in Ogden, Davis County

LAYTON -- Hotel occupancy in Ogden and Davis County crept up in March, leaving hoteliers here excited for the future.

Johnson said the recent report is an indication things are headed the right direction.

"Occupancy leads rates. We have to get occupancy up before we can ever see an increase in rates," Johnson said.

"Low rates are fantastic for travelers," Johnson said.

But from a business standpoint, he said, the property owner has a business to run and they are hoping to make money off it.

Hoteliers are not wanting to ratchet-up the rates on consumers, but as demands fill, it is difficult for hoteliers to quickly change supply, Johnson said.

"We are a supply and demand model like any other. We just can't up and change our supply as we want," he said of their lack of immediate flexibility to add rooms.

Other than the mountain resorts, like those in Park City, and the downtown Salt Lake City corridor, nearly every other segment of the state was up in comparing the March 2010 hotel occupancy rates with the March 2009 figures, Johnson said.

In the mountain resorts room rates were down about $20 per night, while the downtown Salt Lake City corridor experienced a $10 dip in rates, Johnson said.

Some hotels had to sell rooms cheaper to get the occupancy rate they did, he said.

"Occupancy is up. (But) the rate is down," said Johnson, who anticipates occupancy will have to reach about 65 percent before room rates increase.

The March report is particularly promising, considering the year hotels experienced in 2009 and the last quarter of 2008.

The year 2009 was a rough period on hotels across the state and nation, as well as internationally, Johnson said.

But due to military visits to Hill Air Force Base, summer and business travel to the Wasatch Front, area ski resorts and Antelope Island, Davis County and Ogden were able to stave off some of last year's decline, Johnson said.

There is also news on the horizon of more hotels to come.

Bids for the project are promising, Pettingill said, but no contracts have been signed as they continue to negotiate.

Once the project is complete, Pettingill said, he expects it will take a few years for the area's occupancy rate to stabilize with the added rooms. The hope is the extended-stay suites will serve as another Davis Conference Center hotel in giving convention attendees another option.

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Viceroy Hotels Targets Europe, Mideast Expansion, Investor Says

Posted: 21 Apr 2010 04:30 AM PDT

By Zainab Fattah

April 21 (Bloomberg) -- Viceroy Hotels, a five-star brand focused on the U.S. and Central America, plans to expand in cities from Beirut to Paris as demand for luxury accommodation recovers, according to one of the company's owners.

"The hotel market has been saturated with the traditional brands and people want a bit more flair in their hotels," said John Thomas, executive director of Mubadala Real Estate, an Abu Dhabi government-owned investor that controls half of Viceroy. "It's not enough to have pink colored sheets and marble."

The Viceroy Hotel group, which also owns The Tides brand, aims to add three or four properties a year and is targeting Hong Kong, New York, London, Paris, Rome and Kuala Lumpur, Thomas said. The company, a unit of Mubadala Development, aims to open a resort on Vagaru Island in the Maldives by the end of this year and plans a Viceroy hotel on Abu Dhabi's Sowwah Island.

"We are waiting for hotel assets to be a little bit more distressed," Thomas said. "We are not seeing a whole a lot of that in the U.S. and in Europe we are waiting for few opportunities to show up."

The most expensive U.S. hotels had the lodging industry's highest occupancy rates at 63.1 percent during the first quarter as demand for rooms above $200 started to recover from a slump in 2009, Smith Travel Research Inc. said this month. Viceroy had 12 operating hotels when Mubadala Real Estate bought its stake in 2008. It has since opened properties in Colorado, Mexico and the Caribbean.

Mubadala Real Estate is in talks with investors about a Viceroy Hotel in Beirut, Thomas said.

"We are looking for local partners," he said. "Beirut is a crossroads for people from this region. It's a place we need to get to."

Mubadala Development is an Abu Dhabi government-backed investor with stakes in Carlyle Group and Ferrari SpA. The investment company was among seven Abu Dhabi entities downgraded in March by Moody's Investors Service, which cited the lack of an "explicit formal agreement" guaranteeing government support.

-- With assistance from Vivian Salama in Abu Dhabi. Editors: Ross Larsen, Andrew Blackman.

To contact the reporter on this story: Zainab Fattah in Dubai on zfattah@bloomberg.net

Last Updated: April 21, 2010 06:51 EDT

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Hotels Lodging

Wednesday, April 21, 2010

“Orlando-area hotels check in with best month since 2008” plus 3 more

“Orlando-area hotels check in with best month since 2008” plus 3 more

More on Orlando hotels' trying times:

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