abadani69
07-06-2006, 10:35 PM
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/192006/324945/i1.jpg
PICKING UP THE PIECES
NATIONAL REPORT—Now that most Hurricane Katrina evacuees have moved from hotels, some of these properties have been left with a void to fill to bring occupancy levels up again. Nowhere is this more evident than in New Orleans, which bore the brunt of the hurricane's wrath in August.
For example, at the Astor Crown Plaza, evacuees filled 75 percent of its 700-plus rooms from mid-October until February, departing only to comply with a Federal Emergency Management Agency deadline to relocate to more permanent housing. Mardi Gras bumped up occupancy once again, but even the annual celebration did little to ensure future bookings, according to Don Zimmer, v.p., sales for the Astor and other hotels in the New Orleans Fine Hotels portfolio.
"It's difficult to fill more rooms," he said. "We're still faced with fear from a national basis. The drive market, for one, has a picture of New Orleans that is empty and closed. The devastation is what was on the news but we're back to business."
This negative image also has walloped the convention business, which the hotel depends upon, he said. Cancellations have been widespread not only for this year but also into 2007 and partially into 2008 and 2009, he said. But the upside is that it has spurred the Astor to create a new campaign to fit the times.
"It's presenting an opportunity for hotels to get aggressive with getting the word out," he said.
The hotel has earmarked $200,000 for a direct-mail promotion, new Web sites and hosting meeting planners and travel agents for on-site inspections, Zimmer said. Lower tariffs also have become part of the norm.
"Rates are at an all-time low for conventions and leisure travelers," he said. "Our rooms are down to $99 from more than $200. Bargains are to be had."
The sudden intake of thousands of storm victims also put renovations on hold at the Fine hotels. Three of the nine locally owned properties are due for repair now.
Hotels like the Holiday Inn New Orleans-French Quarter also are making adjustments to jump-start occupancies. Until the February FEMA deadline, evacuees accounted for 43 percent of its 370 rooms. Now the hotel is capitalizing on the rebirth of New Orleans by courting crews and other personnel bound for the city to rebuild it, said g.m. Darrius Gray, who also is president of the Greater New Orleans Hotel & Lodging Assn.
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/192006/324945/i3.jpg
The Hilton Americas-Houston housed between 4,500 and 5,000 evacuees the first two weeks after Hurricane Katrina.
Among the perks being offered are flexible rates and value-added extras like a complimentary breakfast, he said.
"We have to work both ends of this," he said. "We're doing strong negotiations."
A new marketing plan is about to be unveiled, which will introduce new packages on the hotel Web site in addition to pursuing the traditional drive market.
"All leads will be considered," Gray said. "We're still sourcing and making initial contacts to fill rooms. If the hotel had not been filled with evacuees, it would have been a real serious problem."
Establishing a timeline for tourism to bounce back is not easy to do because of government issues that still need to be resolved, according to Gray.
"It's hard to put a finger on it because of various factors in play," he said. "We may know more in six months."
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/192006/324945/i4.jpg
Flexible rates and other perks are being offered by the Holiday Inn New Orleans-French Quarter to attract guests.
The Gulf Coast also had severe damage to its hotels, driving business to places like Jackson, Miss. One hundred and sixty miles north of the coast, hotels like the Cabot Lodge Jackson (Miss.) North became a safe harbor to many.
"We received the influx from people fleeing hurricanes Katrina, Rita and Wilma from a four-state region—Mississippi, Alabama, Louisiana and the Florida Panhandle," said g.m. Scott Sledge, who also is regional manager for the MMI Hotel Group and president of the Mississippi Hotel & Lodging Assn. "This lasted for a three- to four-week time period."
The next wave of guests at the 208-room property was relief workers and insurance adjusters, who stayed until around Christmas, exiting the hotel when they found lodging closer to their target work areas, he said. By then, more of the 5,500 out of 17,000 post-hurricane rooms in the coastal areas started reopening.
By January and February, regular business travel picked up again while the hotel started receiving displaced meeting groups, which had to be rescheduled from hurricane-damaged regions. In addition, large faith-based groups have started checking in to help with reconstruction efforts.
"What we are seeing now is that future bookings look good and group business is higher from the affected areas," he said. "The economic engines are revitalizing by Jackson being the capital and we intend to capitalize on its central location. The pre-Katrina market was struggling. The post-Katrina market has changed."
Unlike properties along the hurricane paths, the Cabot Lodge has been able to increase room rates since December because of higher costs for utilities and supplies, Sledge said.
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/192006/324945/i5.jpg
Villarubia HILTON AMERICAS -HOUSTON
A different scenario was playing out in Houston. Hotels welcomed 200,000 evacuees from Louisiana in the days before and after Katrina.
"They came and went on a consistent basis two months after the hurricane," said David Villarubia, g.m. of the Hilton Americas-Houston. "The first two weeks, we had between 4,500 and 5,000 evacuees and 700 pets. If this happened 3,000 years ago, it would have been called Noah's Ark."
The arrival of a large meeting group was looming for the 1,203-room convention property, which coincided with a November FEMA deadline for relocating the evacuees, he said. The hotel set up a desk in the lobby and worked with the city and the Greater Houston Convention & Visitors Bureau to move the evacuees in time.
Although room rates were substantially lowered for the guests, the hotel made up what it lost in revenue by gaining a lot in goodwill, Villarubia said.
"The impact on the Hilton was that, locally, there were many more positive thoughts about the hotel," he said.
PICKING UP THE PIECES
NATIONAL REPORT—Now that most Hurricane Katrina evacuees have moved from hotels, some of these properties have been left with a void to fill to bring occupancy levels up again. Nowhere is this more evident than in New Orleans, which bore the brunt of the hurricane's wrath in August.
For example, at the Astor Crown Plaza, evacuees filled 75 percent of its 700-plus rooms from mid-October until February, departing only to comply with a Federal Emergency Management Agency deadline to relocate to more permanent housing. Mardi Gras bumped up occupancy once again, but even the annual celebration did little to ensure future bookings, according to Don Zimmer, v.p., sales for the Astor and other hotels in the New Orleans Fine Hotels portfolio.
"It's difficult to fill more rooms," he said. "We're still faced with fear from a national basis. The drive market, for one, has a picture of New Orleans that is empty and closed. The devastation is what was on the news but we're back to business."
This negative image also has walloped the convention business, which the hotel depends upon, he said. Cancellations have been widespread not only for this year but also into 2007 and partially into 2008 and 2009, he said. But the upside is that it has spurred the Astor to create a new campaign to fit the times.
"It's presenting an opportunity for hotels to get aggressive with getting the word out," he said.
The hotel has earmarked $200,000 for a direct-mail promotion, new Web sites and hosting meeting planners and travel agents for on-site inspections, Zimmer said. Lower tariffs also have become part of the norm.
"Rates are at an all-time low for conventions and leisure travelers," he said. "Our rooms are down to $99 from more than $200. Bargains are to be had."
The sudden intake of thousands of storm victims also put renovations on hold at the Fine hotels. Three of the nine locally owned properties are due for repair now.
Hotels like the Holiday Inn New Orleans-French Quarter also are making adjustments to jump-start occupancies. Until the February FEMA deadline, evacuees accounted for 43 percent of its 370 rooms. Now the hotel is capitalizing on the rebirth of New Orleans by courting crews and other personnel bound for the city to rebuild it, said g.m. Darrius Gray, who also is president of the Greater New Orleans Hotel & Lodging Assn.
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/192006/324945/i3.jpg
The Hilton Americas-Houston housed between 4,500 and 5,000 evacuees the first two weeks after Hurricane Katrina.
Among the perks being offered are flexible rates and value-added extras like a complimentary breakfast, he said.
"We have to work both ends of this," he said. "We're doing strong negotiations."
A new marketing plan is about to be unveiled, which will introduce new packages on the hotel Web site in addition to pursuing the traditional drive market.
"All leads will be considered," Gray said. "We're still sourcing and making initial contacts to fill rooms. If the hotel had not been filled with evacuees, it would have been a real serious problem."
Establishing a timeline for tourism to bounce back is not easy to do because of government issues that still need to be resolved, according to Gray.
"It's hard to put a finger on it because of various factors in play," he said. "We may know more in six months."
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/192006/324945/i4.jpg
Flexible rates and other perks are being offered by the Holiday Inn New Orleans-French Quarter to attract guests.
The Gulf Coast also had severe damage to its hotels, driving business to places like Jackson, Miss. One hundred and sixty miles north of the coast, hotels like the Cabot Lodge Jackson (Miss.) North became a safe harbor to many.
"We received the influx from people fleeing hurricanes Katrina, Rita and Wilma from a four-state region—Mississippi, Alabama, Louisiana and the Florida Panhandle," said g.m. Scott Sledge, who also is regional manager for the MMI Hotel Group and president of the Mississippi Hotel & Lodging Assn. "This lasted for a three- to four-week time period."
The next wave of guests at the 208-room property was relief workers and insurance adjusters, who stayed until around Christmas, exiting the hotel when they found lodging closer to their target work areas, he said. By then, more of the 5,500 out of 17,000 post-hurricane rooms in the coastal areas started reopening.
By January and February, regular business travel picked up again while the hotel started receiving displaced meeting groups, which had to be rescheduled from hurricane-damaged regions. In addition, large faith-based groups have started checking in to help with reconstruction efforts.
"What we are seeing now is that future bookings look good and group business is higher from the affected areas," he said. "The economic engines are revitalizing by Jackson being the capital and we intend to capitalize on its central location. The pre-Katrina market was struggling. The post-Katrina market has changed."
Unlike properties along the hurricane paths, the Cabot Lodge has been able to increase room rates since December because of higher costs for utilities and supplies, Sledge said.
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/192006/324945/i5.jpg
Villarubia HILTON AMERICAS -HOUSTON
A different scenario was playing out in Houston. Hotels welcomed 200,000 evacuees from Louisiana in the days before and after Katrina.
"They came and went on a consistent basis two months after the hurricane," said David Villarubia, g.m. of the Hilton Americas-Houston. "The first two weeks, we had between 4,500 and 5,000 evacuees and 700 pets. If this happened 3,000 years ago, it would have been called Noah's Ark."
The arrival of a large meeting group was looming for the 1,203-room convention property, which coincided with a November FEMA deadline for relocating the evacuees, he said. The hotel set up a desk in the lobby and worked with the city and the Greater Houston Convention & Visitors Bureau to move the evacuees in time.
Although room rates were substantially lowered for the guests, the hotel made up what it lost in revenue by gaining a lot in goodwill, Villarubia said.
"The impact on the Hilton was that, locally, there were many more positive thoughts about the hotel," he said.