“Davis County saw one of the larger increases in occupancy in the state,” says Michael Johnson, CEO of the Utah Hotel & Lodging Association. “It saw nearly a 3 percent increase from March of last year to March of this year.”
Hotel rooms saw Davis County occupancy climb to 61.3 percent last month, the Rocky Mountain Lodging Report indicated.
“The county’s growth is much better than the state average, which was a little less than 1 percent,” said Johnson, a Layton resident.
The state average was 65.1 percent for March, but ranges from 46 percent in Logan to 75.7 percent in the south Salt Lake Valley area. The state average in March of 2009 was 62.2 percent.
“There are some good things happening, but I’m certainly not ready to put on rose-colored glasses,” saying all is well, he said. The recession has still had its impact on travel and hotels.
But an example of positive signs is that Marriott announced a higher-than-expected first quarter profit for 2010 vs. a loss for that same January-March period last year, Johnson said.
“Generally, I think there are some positives, but Utah is not an exception” in terms of lower occupancy and related numbers for hotels, he said.
“It’s improving. We’re hearing positive things,” said Davis Convention & Visitors Bureau CEO Barbara Riddle. “You look at the occupancies for the county, and we’re improving our market share.”
The Average Daily Rate stayed close to last year. That’s the average amount that can be charged for a hotel room, based on revenues generated.
“The rate follows occupancy. Occupancy is going to have to grow before the rate comes back up” to previous levels, Johnson said.
“For us, we see growth in April, May and June,” Riddle said.
“The first three months of the year and last two months of the year are typically the most challenging,” Riddle said.
But from April to October, Davis County hotels generally do “really well, especially starting in June when Lagoon opens. That’s when it pops into the 70 percentile range.”
A new 100-plus room Home2Suites Hilton-brand hotel, meanwhile, is moving close to a ground breaking in Layton.
“Bids are in. They’re being reviewed now,” said Scott Lunt, general manager of the Hilton Garden Hotel in Layton. “I would imagine ground will be broken by the end of May.”
The new facility is due to be built across the street from the Hilton Garden, and will also be owned and managed by Western States Lodging. Layton businessman Kevin Garn is a part-owner of that firm.
Indicative of statewide growth, Johnson noted there are new hotels open at The Gateway and near Salt Lake International Airport.
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