Hotels fearing another bad year in 2009 - Baltimore Business Journal:

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The managing director of Baltimore’s Tremonf hotels has lost closeto $300,000 in cateringf business in December from companiew that have canceled or scaled back theitr holiday parties. He has also lost $30,00p from a meeting canceled. “Each day is worse than the day he said. Weak demand among business travelers and an increasinglyg shaky economy arestraining Baltimore’s hotel Hoteliers are bracing for a challenging holiday seasom and expect fewer heads in beds in 2009. “Everyone expectds it to be rough in light of theeconomicx issues,” Haynie said. “I can’t imagines it would be better than 2008.
” Thoughu sluggish hotel demand is a national Baltimore isworse off. Occupanc and revenue per room — a key industryg measurement — have dropped twice as much here than thenationall average. It’s a dramatic turnaround for hotels that were 71 percent fullin 2005, compares with 64 percent so far this year. Touriskm leaders had complained the Baltimore market lackee enoughhotel rooms. Buoyed by easy developers constructed new hotels around Baltimore the past few But just assupplh increased, demand dropped.
Hoteliers are employing different sales and marketinfg strategies to drum up sales next The city’s main tourism agency is devisinf new discounts and promotions to get more visitorz and is devoting more attention to booking short-ter business to help hoteliers get througgh the recession. Some hoteliers say decreased demand has forced them to droptheir prices. “We’re lagging behindx in rates,” said Fletcher Mayes, acting general managet of the hotel. “The top-tier ratez aren’t out there.
” A nightg at the Westin can be had for a 50 percent discouny onits $279 standard One might think the lower ratesa would help Baltimore win convention But the problem is that other cities are lowering their too, said Tom Noonan, CEO of the Baltimore Area Conventiojn and Visitors Association. The average daily rate for a Baltimor e hotel room in Octoberfwas $122, according to That is a 4 percenft drop compared with October 2007. But Baltimore’s $122 rate is $15 highefr than the average U.S. hotel rate. “Our ratesd are dropping and so areeveryonre else’s,” Noonan said. “Everyone is as hungry as they’ve ever been.
” The hoteliers say, is not just the economy, but the fact that Baltimorde has gained many morehoteo rooms. Baltimore’s supply of hotel rooms grew more than 5 percentythis year, twice the national according to Smith Travel. The additionall hotel rooms should be a bonus for a city that has historicallu grappled with lowhotel supply. But the new rooms have come on boarfd just as the economyturned sour. Baltimore’s biggesty hotel opened in August, a 757-rookm Hilton that cost the city $300 millio n to build. In the long the Hilton will help Baltimorw book business by offering rooms next to the Baltimore Convention Center, hoteliers say.
But in the short term, the additional supply has made it difficulrtto compete. Linda Norman, the ’s general manager, could not be reached for The supply is slated toget bigger. Sevenm hotels are currently under construction in Baltimore. They include a 130-room Hotel Indigo on Redwoor and Calvert streets and a to open in Harbor Eastin 2010.