Hotels, motels locked up strong growth over years|[06/17/07]
Published 12:00 am Sunday, June 17, 2007
Hotel and motel rooms in Vicksburg have more than doubled since 1981 when Linda Hollowell took her job at Battlefield Inn, formerly Ramada Inn.
The general manager of the North Frontage Road property said she has seen a lot of changes in the industry in her 26 years.
Vicksburg is now home to 1,936 hotel and motel rooms at 27 properties – including two under construction – compared with about 10 hotels and motels that provided about 500 in the early 1980s.
“It’s changed drastically,” Hollowell said. “When I first started, there were very few hotels and motels in Vicksburg.”
The main properties were Ramada Inn, Holiday Inn and the Magnolia Best Western, she said. Other properties, which she referred to as “B properties” were the Downtowner, now Relax Inn; Dixiana; Hillcrest Inn; Fowler Inn; Beechwood Inn; and Scottish Inn.
And, back then, she said, a standard room rate was $30. Now, a guest doesn’t usually pay less than $69 a night at her establishment. Others may charge rates in the “triple digits,” she said.
“Yeah – I’ve seen a lot of changes,” she said.
The growth in hotel and motel rooms didn’t happen overnight, Hollowell and other property managers said.
“Little by little, more and more properties came to the city,” she said.
Of course, such factors as four casinos opening, each with its own hotel, in the early to mid-1990s, have made a difference.
“When the casinos came in ’93 – that’s when everything changed,” Hollowell said.
More properties shot up, but the competition the casinos brought with their hotels has been a positive break for the industry. And, for some properties, it hasn’t hurt at all.
“Casinos make money on their tables,” said Henry Patel, owner and manager of Best Western and Deluxe Inn. “The majority (of guests) don’t want to stay there.”
The problem Hollowell sees with the casinos is the fact that they don’t market Vicksburg as a destination in the way other Mississippi casino ports, such as Biloxi and Tunica, have.
“I think they could pull in more people with a marketing strategy,” Hollowell said.
Hurricane Katrina, which destroyed much of the Mississippi and Louisiana coasts in August 2005, had a huge effect on occupancy in hotels and motels everywhere north of the devastation. Vicksburg hoteliers were no different. For months, rooms were chock-full of guests, many of whom had extended stays while they waited out Katrina’s aftermath. Occupancy numbers provided by Smith Travel Research, a company based in Hendersonville, Tenn., which collects monthly and daily operating data from the lodging industry, showed a jump in occupancy from 64.9 percent in 2004 to 70 percent in 2005.
“We had good occupancy here,” Hollowell said.
Paul Patel, who has been in the business since 1984 and took up ownership of Holiday Inn Express and Comfort Inn in Vicksburg in 2003, said business has pretty much gone back to normal since the hurricane.
Last year’s occupancy rates in Vicksburg did, however, take a dip to 65.7 percent. But, the market here is a good one, Paul Patel said.
“Vicksburg has a good, steady market,” he said. “In Mississippi, every city is steady. It’s not going to make you rich overnight, but it’s not going to put you in the poor house, either.”
But, in the past, Hollowell remembers when all area hotels would be booked almost every night. Certain local events would even cause spillover to nearby towns.
“Back in the day, like when they would do Pilgrimage, we would fill Tallulah and Clinton,” she said. “Before other properties – in the ’80s – the entire town would fill.”
Vicksburg draws, not only tourists who come to see its history and culture, but also caters to a large number of people here for business, government work or conventions.
When the city built the Vicksburg Convention Center 10 years ago, hotel and motel managers were unhappy with the decision to build it downtown.
Larry Gawronski, executive director of the Mulberry Street facility, reported in April that hotel room nights for related conventions and shows increased to 10,560 this year from last year’s 4,033.
Although having a convention center may continually increase overnight business stays, hoteliers believe its location lacks the ability to bring even more people to where the hotels and motels are, which is usually near Interstate 20.
“It would have been better for our industry if it had been built more centrally located to I-20,” Hollowell said.
Gawronski said, although the convention center may have been the only significant property downtown when the site was chosen in 1995, it now stands as an anchor to downtown redevelopment, which includes the 2003 urban renewal along Washington Street and revitalization of the Levee Street area.
“Now with the redevelopment downtown, we’re not the cheese that stands alone,” Gawronski said.
For that reason, talk about building a hotel adjacent to the convention center, which has lingered since before the center was ever built, continues.
“It bodes well for a hotel property in the future. We’re starting to turn heads,” Gawronski said. “We’re always pushing for (an adjacent hotel). It’s not what I would consider a hot, active lead. But, we’ve always seen interest.”
Having a property built near the convention center is not a move the hotel/motel industry would necessarily support.
“That’s like biting the hand that feeds you,” Paul Patel said.
Inside Vicksburg, a 2 percent tax is already placed on room rentals, a moved made 10 years ago to help pay for the Vicksburg Convention Center. The city has continued to use the tax to offset expenses incurred by the convention center.
Building a downtown hotel would presumable take away a large portion of their business.
But, Gawronski said an expansion to the center, which regularly reports higher attendance and usage numbers to its Advisory Board, will be the move that lures hotel developers near the site.
“We are a little undersized to attract a hotel,” he said. “Doubling our size would put us in the category to support a hotel on a regular basis.”
Other hotel developments around town are planned, including luxury and boutique properties, which are geared to a different type of guest.
Paul Patel is unopposed to the birth of luxury hotels. In fact, he plans to break ground this month on a Courtyard by Marriott behind Holiday Inn Express on East Clay Street. At least two other properties, The Ware House along Washington Street and the old U.S. Post Office downtown are expected to offer luxury rooms to guests.
“It’s good for the city – it’s giving our consumers another choice,” he said. “Plus – I like the competition. It keeps you on your toes.”
Hotels and motels aren’t the only lodging options for Vicksburg. Many tourists take advantage of the 14 bed and breakfasts the town offers. But that type of stay appeals to a certain crowd and wouldn’t affect the clientele that hotels and motels attract, Hollowell said.
High gas prices also seem to not have much affect on the business. Henry Patel said people will continue to dig deep in their pockets when it comes to traveling.
“That’s old news. We all know (gas is) high,” Hollowell said.
The future of the industry in Vicksburg should be a strong one because of its location, Paul Patel said.
“I think it’s going to hold up. We’re fortunate. Vicksburg is right on the interstate. There’s always going to be traffic,” he said.
Marty Crevitt, senior district manager for Jameson Inn and former manager of Ameristar Casino Hotel, said he has been surprised by Vicksburg’s stronghold on lodging.
“Ten years ago I was curious whether the market would support Vicksburg,” Crevitt said “I’ve always been amazed. Everybody seems to be pretty busy. It’s amazing to see the tourists and travelers grow into the market.”