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So far so good for local hotels
by Tom Busselberg
Nov 18, 2008 | 249 views | 0 0 comments | 3 3 recommendations | email to a friend | print
HOTEL VISITOR NUMBERS grew in the county, over the year, with any impact of economic downturn yet to be felt.
HOTEL VISITOR NUMBERS grew in the county, over the year, with any impact of economic downturn yet to be felt.
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LAYTON — The economic downturn hasn’t hit county hotels, yet.

And, with an earlier-than usual skiing season already under way at many resorts, maybe it won’t.

Through September, the latest figures available, Davis County’s hotels registered an average occupancy rate of 72.4 percent, January-September. That was up nearly 2 percentage points from a year earlier.

According to Davis County Convention & Visitors Bureau CEO Barbara Riddle, that figure was accompanied by a $6.74 increase in the average daily rate, which stood at $84.25 compared to $77.51 a year earlier.

That should all be good news for hoteliers. In fact, Davis County’s occupancy rates were only slightly lower than Salt Lake City’s, which were the highest in the state.

“It’s great right now,” said Riddle of the hotels’ positive growth. “We rocked. We’re in a wait and see mode for October-December” numbers.

And to see if the economic downturn starts to impact the numbers of people staying at county hotels, eating in its restaurants, etc.

“Hotels have not seen the downturn,” yet, confirmed Kathy Dysert, the CVB’s director of sales and marketing. Thanks to such constant draws as Lagoon during the summer months, “it’s hard when they’re at 80 percent occupancy (80.5-87.2 percent July-August) to think there would be a slowdown.”

Riddle also noted the strong support of Hill Air Force Base and associated aerospace firms as a constant, strong source of business for meetings.

State averages, meanwhile, were down 3.6 percent in terms of hotel occupancy.

“As we look at the future, we’re working with clients to book meetings. There has been a slowdown,” in terms of that future business, Riddle said.

“Some are not wanting to commit, want to wait and see,” although interest seems to be growing, again, she said.

Big convention venues, such as the Salt Palace or facilities in Las Vegas or other larger cities, probably won’t feel the impact as much, Riddle said. That’s because larger conventions don’t seem to be experiencing the impact of other groups.

“Next year, we might feel the impact (of a downturn) more,” said Dave Hilliard, director of catering at the Davis Conference Center.

“We’ve seen a little slowdown, but people are still holding meetings. But they’re maybe shorter (fewer days), using less audio-visual, with less food (included as part of meetings),” he said.

But overall, the Conference Center has seen a hike of $500,000 in revenue.

“The expansion has been open for six months, and it’s working,” Hilliard said, as far as drawing business.

“We’ve had some increase in numbers of groups booking, but there is more space,” so such groups as Trapper Trails Council, Boy Scouts of America can spread out.

“They can grow beyond their old size and some have more dates” booked, he said.

One statewide group of several hundred people that just completed its multi-day conference reportedly had booked every-other-year for the next decade, Hilliard said.

And other major statewide groups, such as the Utah Farm Bureau, are also looking at returning multiple times over the next year or years (see separate article).

“A lot of product (convention space) is being built,” Riddle said of activity across the state. “Some groups have just wanted to wait until any potential kinks are worked out,” such as at the expanded Conference Center, before booking.

“It’s a great size for businesses to fit conferences in the Davis County area,” she said of the expansion. “We are in a perfect position.”

tbusselberg@davisclipper.com



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