Hotel & Motel Management - August 2008 - (Page 24) 24 Trends & Stats H&MM August 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Casinos contribute hefty sum to new room count clude the 1,003-room Hyatt Grand San Antonio and the 550-room InterContiIN THE nental San Francisco. These round out New rooms online in 2008 the list of bigger boxes that came online Casinos boost rooms so far this year. Chicago market increases The new rooms opening almost exClosed rooms slowing actly mirror what’s in the pipeline, in terms of being led by product in the midscale-without-food-and-beverage chain By Bobby Bowers scale. That trend has been apparent for H&MM at least the past three to five years. This Columnist can be attributed to the fact that the midscale-without-F&B and upscale segments are a lot less risky right now. History has shown it’s a lot easier to find sites and enter markets with these chain scales. aking a look at the more than As might be expected then, the more 62,000 new rooms that have expensive to build luxury segment has the come online from January least amount of new rooms opened, with through May of this year, casino properabout 1,700 for the January to May 2008 ties have contributed greatly to the room time frame. count with just a few hotel openings. Among the luxury properties that Leading the list is The Palazzo Resort opened during this time period are the Hotel Casino on Las Vegas Boulevard InterContinental, The Clement Monwith 3,025 rooms. The MGM Grand at terey (Calif.) with 209 Foxwoods in Mashanrooms; the Four Seatucket, Conn., conCasino properties have sons St. Louis with 200 tributed 825 rooms. rooms; and the RitzPalms Place in Las Ve- contributed greatly to Carlton Denver with gas added another 599 the room count with just 202 rooms. rooms to the Las VeA look at net rooms gas market in the same a few hotel openings. opened from 1990 to time period. The Am2007 shows there has eristar Casino Hobeen a divergence since about 2005, tel in St. Charles, Mo., opened with 397 where the number of rooms closing has rooms. The Agua Caliente Casino Resort Spa added 340 rooms in Rancho Mi- slowed considerably. So, while room supply is going up and rooms closed is rage, Calif. headed down, the amount of net rooms The Trump International Hotel, opened is increasing a lot faster than over while not a casino hotel, contributed an the last few years. additional 1,282 guestrooms to Las VeOne possible explanation for the slowgas. For the time period, the Las Vegas down in number of closed rooms might market leads the U.S. with amount of new rooms at 5,100—in just five month’s be that since there was an uptick from about 2002 to 2005, there might not time and from essentially three new have been as many rooms that needed to hotels. be closed after the surge. Another notable project that opened The average of annual rooms opened was the 2,000-room Gaylord National looks like it is trending up, with the averResort & Convention Center at the Naage from 2004 to 2007 at 76,000 rooms tional Harbor project in Prince George’s County, Md. This bumped up the Wash- per year. We are not back to the average openington D.C.-Maryland-Virginia market to have the second-largest amount of new ings enjoyed in the late ’90s and early this century (average of 121,800 rooms rooms with 3,000. per year), but it looks like openings are Significant hotels that brought 2,000 on their way back up after a short-term new rooms to the Chicago market inslump that began in 2004. In that year, clude the Trump International Hotel only about 60,000 new rooms came Chicago with 339 rooms; the 414-room KeyLime Cove Water Park Resort & Ho- online. hmm@questex.com tel in Gurnee, Ill.; and the 332-room Blackstone, a Renaissance Hotel on Michigan Avenue. Bobby Bowers is senior vice president of Other properties that had a significant operations for Hendersonville, Tenn.-based impact on the total rooms for the U.S. in- Smith Travel Research. Total United States – Annual rooms opened with multi-year averages 1990-2007 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 Avg. ’04-’07: 76K Avg. ’90-’98: 84.7K Avg. ’99-’03: 121.8K details Top five markets – New room openings – in thousands – May YTD 2008 Las Vegas Washington Chicago San Antonio Orlando 1.6 1.3 2.3 3.0 5.1 T 0 2 4 6 8 10 Total United States – New construction room openings – in thousands – May YTD 2008 30 20.9 20 12.5 10.4 10 1.7 7.5 4.7 4.4 0 Luxury Upperupscale Upscale Midscale Midscale Economy Unw/F&B w/o F&B affiliated Total United States – Annual rooms added, closed and net – 1990-2007 190,000 Opened Closed Net 140,000 90,000 40,000 -10,000 1991 1993 1995 1997 1999 2001 2003 2005 2007 © 2008 Smith Travel Research http://HotelMotel.com http://www.HotelMotel.com/digital_edition
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