Sunday, July 11, 2010

“Room for more Ogden hotels?” plus 3 more

“Room for more Ogden hotels?” plus 3 more

Room for more Ogden hotels?

Posted: 11 Jul 2010 09:46 PM PDT

OGDEN -- A pair of experts have differing opinions as to whether developers would face financial challenges in undertaking the construction of two proposed downtown hotels.

Robert S. Benton, a hospitality industry consultant from Parker, Colo., said many banks are reluctant to lend money for new hotels because the national economy remains fragile. "There is very little (private) financing available for new hotels," he said.

However, construction loans can still be obtained by well-heeled hotel developers who have good track records, said Greg Shields, a consultant with Barker-Shields Hospitality Group based in Salt Lake City.

"There is always a way to figure out how to get it done," he said.

Shields represents the Sherman Group, a Minneapolis-based commercial real estate developer interested in building a hotel at the northwest corner of 23rd Street and Washington Boulevard within The Junction retail and entertainment complex.

Shields declined to provide details regarding the Sherman Group's city hotel proposal. Officials with the Sherman Group could not be reached for comment.

In addition to the Sherman Group, Sandy-based Sequoia Development Inc. also is interested in building an $18.5 million multistory hotel at The Junction.

The Sherman Group and Sequoia Development are both vying to build a hotel on the same parcel at The Junction.

However, only one developer will be chosen for the project, said Mayor Matthew Godfrey.

The city's administration is seeking $12 million in tax-exempt bonds from the state to help fund construction of the hotel and an underground 250-stall public parking garage that would serve the structure.

Bonds would come from unused federal stimulus funds allocated to Utah municipalities.

John Patterson, the city's chief administrative officer, said a bond fund request has been submitted specifically for Sequoia Development because the company has provided a formal proposal for the hotel and is involved in active discussions with the administration.

The city is willing to consider other proposals from companies like Sherman, but it hasn't been determined if stimulus fund bonds would be available for the firms, said Patterson.

The administration also is working on a $16.2 million project with Octagon Capital Partners, headquartered in Virginia, to build another 250-stall parking structure and redevelop four buildings along the east side of Washington Boulevard.

The buildings are at 2314, 2318, 2324 and 2336 Washington Blvd. and encompass about 92,000 square feet.

Plans include the construction of retail space and a 30-room boutique hotel that would cater to outdoor recreation enthusiasts.

Stimulus fund bonds, similar to those sought by the administration for The Junction hotel and parking garage, also would be used for the Octagon project.

Officials with Octagon Capital Partners could not be reached for comment regarding the project.

Even if the bonds are secured, it will be financially challenging to find private financing for the hotels because of current economic conditions, Godfrey said.

"It's really hard," he said. "Banks aren't lending on commercial properties."

Although loans may be hard to obtain, developers interested in building hotels should be making plans now to quickly enter the market when the economy turns around, said Benton.

"It's the right time to be looking at the market," he said.

The city's administration is smart to be starting preparations, because it typically takes at least two years to construct a hotel, Shields said.

Downtown hotels are needed, particularly at The Junction, to help provide blocks of rooms so that large, lucrative conventions attended by as many as 600 people can be booked at Ogden Eccles Conference Center a block away, Godfrey said.

The Junction, which includes the Megaplex 13 theaters and the adjacent Salomon Center, which houses Fat Cats bowling and arcade, Gold's Gym, and several restaurants, is the ideal location for a hotel because it offers a variety of activities for conference center patrons, Godfrey said.

Debbie Merritt, general manager of Hampton Inn and Suites at 2401 S. Washington Blvd., agrees more hotel rooms downtown would attract larger conventions.

However, she would like to see occupancy rates improve for existing downtown hotels before new ones are built.

"It's a Catch-22," she said regarding the balancing act of adding new hotels without adversely affecting existing ones.

Even with two new downtown hotels, organizers of large conventions still will likely choose Salt Lake City over Ogden, Benton said.

He also questioned whether there is enough customer demand and potential profit for developers to warrant the hotels.

In 2009, hotel room occupancy in Ogden averaged about 60 percent, which was slightly less than Salt Lake City and Davis County, which had about 61 percent occupancy, according to the Rocky Mountain Lodging Report, which tracks hotel statistics for the region.

There are 27 hotels in the Ogden area, according to the Ogden Convention & Visitors Bureau.

Major hotels downtown include the Ogden Marriott, Hampton Inn and Suites, and Ben Lomond Suites.

Room rates in Ogden averaged $83.41 last year compared to $81.60 in Davis County and $92.28 in Salt Lake City, the report indicates.

While the two proposed hotels in Ogden would likely have to charge more than the current average room rate to be profitable, raising prices could turn off cost-conscious travelers and military personnel from nearby Hill Air Force Base, who receive about $70 per diem from the federal government, Benton said.

"Ogden is a tough market," he said.

Still, Shields believes The Junction is an outstanding location for a hotel because its urban setting and proximity to the mountains distinguishes it from inns that are in nearby suburban Layton.

"Ogden has the ability to create a truly unique situation," he said.

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5 Ways to Travel in Style on a Budget

Posted: 11 Jul 2010 10:46 AM PDT

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Airlines Play the No-Fault Card

Posted: 11 Jul 2010 11:15 PM PDT

DESPERATE passengers camped out in airports have been a reliable subject for news broadcasts this year, with cameras panning from teary travelers to close-ups of the word "CANCELED" on flight status displays.

The storms and strikes that cause such scenarios are nothing new, but this year many passengers have been surprised by how little airlines are doing for customers when a flight is canceled. In the scramble to be rebooked, travelers are generally given two options: a refund for the unused portion of their ticket, or a seat on the airline's next available flight, which, now that there are fewer flights and many of those flights are full, could be days later. Five or 10 years ago, airlines paid for hotels and meals more readily, but these days cash-strapped carriers largely try to avoid picking up such charges, even when the cancellation is the airline's fault. Bill Mosley, a spokesman for the Department of Transportation, said that the federal government does not regulate what airlines must do for passengers on canceled flights, though carriers are legally obligated to fulfill any promises made in their contract of carriage, the lengthy document that governs ticket purchases.

The legal jargon, however, is difficult to decipher, and the policies have become increasingly vague. "The language in very subtle ways has gotten a bit mushier," said Bill McGee, a travel consultant to Consumers Union, the advocacy group. "In the past, if you saw language saying the airline 'will' do such-and-such, now you're seeing they 'may.' "

Here are some answers to questions that arise when a domestic flight is canceled.

When is a cancellation the airline's fault?

Hardly ever. Most carriers give themselves plenty of leeway to avoid taking responsibility for cancellations or delays. Among the events that are considered beyond the airline's control are: bad weather, acts of God, terrorist activities, war, strikes, "any shortage of labor, fuel or facilities" and "any event not reasonably foreseen, anticipated or predicted" by the airline.

Basically, the only time an airline might take responsibility for a delay or cancellation is when there's a problem with the aircraft, although Southwest even includes "mechanical difficulties" in its list of not-our-fault situations.

Another problem is that it is the airlines -- not an independent agency -- that determine the cause of a delay or cancellation; a common complaint is that carriers blame everything on bad weather. Of the 50,000 domestic flights canceled in the first four months of this year -- which accounts for 2.5 percent of scheduled flights, according to government statistics -- two-thirds were identified as weather-related (those numbers do not include many regional flights).

Adam Martin was given the weather excuse in June when his American Airlines flight from Chicago to Washington required a mechanical fix. The flight was later delayed by thunderstorms and ultimately canceled, but Mr. Martin said he had to pay for a hotel and cab fare because the cancellation was coded as weather-related. "Had the plane been running properly, we would've gotten out just fine," he said.

Andrea Huguely, a spokeswoman for American, said that the ultimate reason for a cancellation prevails -- in this case, bad weather.

When does an airline have to pay for a hotel room?

If Mr. Martin's cancellation had been deemed American's fault, the airline's contract of carriage reads, "We will provide reasonable overnight accommodations, subject to availability." But airlines are often vague in defining when a cancellation is their fault, leaving plenty of wiggle room to avoid paying for a hotel.

Continental's contract says that the airline will pay for one night's lodging (or at least a "lodging allowance") if a delay exceeds four hours between 10 p.m. and 6 a.m. -- except "when such interruption is due to circumstances outside Continental's control." According to Andrew Ferraro, a Continental spokesman, "required maintenance" is one situation that might cause the airline to cover lodging costs, although he and other airline representatives declined to outline when carriers would foot the bill, or to say how often that happens.

Southwest's contract also states that it will find a hotel room near the airport "at no additional cost to you" if you're stranded overnight and it's Southwest's fault, although Paul Flaningan, a spokesman, said that such a determination is based on each situation.

Bottom line: Don't expect your hotel costs to be covered; legally, the airlines have created lots of loopholes to avoid picking up the bill. But don't hesitate to ask, because most airlines make these decisions on a case-by-case basis.

When does an airline have to put you on another carrier?

Airlines used to include a clause in their carriage contracts saying that if a delay or cancellation was their fault and their next flight was not for several hours, the airline would try to transfer passengers to another carrier with an earlier flight. Now most airlines say they "may" put you on another carrier, and some, like Southwest, simply say they won't.

There also seems to be less willingness among airlines to work together to help stranded travelers. Ruben Ahumada discovered this when his June 12 Spirit Airlines flight from Bogotá, Colombia, to Washington, D.C., was canceled because of the pilots' strike. "I inquired about being accommodated on another airline and Spirit said no," Mr. Ahumada said. He ended up using 30,000 frequent flier miles -- and paying $186 in taxes and booking fees -- for a flight home on American. "I was left in a foreign country with only a $180 refund -- no food, no hotel, nothing," he said.

Misty Pinson, a spokeswoman for Spirit, said that customers affected by the strike were offered a refund for the unused portion of their tickets, plus a $100 flight credit and 20,000 frequent flier miles. But for most passengers, the airline did not pay for tickets on other carriers.

"It's not in the contract of carriage," Ms. Pinson said. "We were able to do it on a limited basis, but there just weren't enough seats for us to be able to do that for everybody."

What else can you do?

Always advocate for better treatment, since airline representatives acknowledge that they sometimes depart from their policies -- and some of those policies apply only "at the passenger's request."

"We empower our employees to make decisions if they find themselves in a situation with a customer that is unique or a special circumstance," said Susan Chana Elliott, a spokeswoman for Delta, confirming that having elite status or paying a higher fare can affect how you are accommodated after a cancellation.

Alexander Anolik, a San Francisco lawyer who specializes in travel law, advises customers to ask (politely) to be put on another carrier. If the cancellation is clearly the airline's fault and you cannot be rebooked in a reasonable time, he said, another option is buying a new ticket and then suing the airline in small claims court to be reimbursed for the extra expense.

"If you're doing it to save an hour, the court may not think that's reasonable," Mr. Anolik said. "But if the airline says come back tomorrow, that's not reasonable."

Next week: Cancellation policies on international flights -- and why passengers have more protection in Europe

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Promotions recognized

Posted: 11 Jul 2010 09:03 PM PDT


Hey, big spender.

The Advertising Specialty Institute's Counselor magazine recently ranked the 25 places pushing hardest to promote their communities and businesses through giveaways. Both Charleston and Columbia made the cut, with the capital city taking a higher spot.

The magazine related the percentage of promotional product sales in the area to the percentage of the country's population in the same market.

The Bridgeport/Stamford area in Connecticut took the top ranking by investing the most per capita, followed by Minneapolis/St. Paul in Minnesota and Miami/Fort Lauderdale in Florida, respectively.

Columbia spent $46 million to rank No. 19 and Charleston took the 24th spot at $38 million.

Room to grow

Charlestowne Hotels has increased its base of rooms under contract for managing or marketing by 75 percent so far this year.

In 2008, the company set out to expand its presence in the Southeast. It has grown more than 100 percent in total rooms over the past year and a half, according to company officials, and this year it entered the Virginia and Florida markets. It previously had been in the Carolinas and Georgia.

Charlestowne Hotels now works with 26 lodging properties. Its offerings include The Restoration on King, an apartment-styled inn atop the downtown Gap and Lucky Brand Jeans stores, the French Quarter Inn in the City Market area and the Holiday Inn Express Mount Pleasant.

Corridor kudos

The S.C. National Heritage Corridor awarded two local distinctions at a recent conference. The corridor, the 320-mile stretch across the state that became a National Heritage Area in 1996, gave Drayton Hall's executive director, George McDaniel, a meritorious service award for his work at the attraction. The corridor gave the Sweetgrass Cultural Arts Festival its heritage tourism advancement award.

Reach Allyson Bird at abird@postandcourier.com.

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