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Experts Allay Neighboring Hoteliers' Fears About $115-Mil Westin Impact

DENVER-There is no cause for alarm that the $115-million Westin will drain occupancies at Stapleton hotels, say the experts. The operations cater to different crowds with different ideas about spending money.

By John Rebchook | Updated on November 23, 2000

DENVER-Existing hotel operators in the vicinity of the former Stapleton International Airport will not be hurt as much as they fear when doors open on a planned $115-million Westin Hotel at the Denver International Airport, experts say.

That’s because it won’t be a SMERF hotel, like the ones across from Stapleton, A. Corey Limbach, vice president of the San Francisco-office of PKF Consulting, told Denver City Council members who sit on the city’s DIA Stapleton Committee. SMERF is an industry acronym for social, military, religious and fraternal groups that provide the bread and butter for many hotels.

SMERF travelers typically watch their pennies or adhere to their per diems. In contrast, the Westin will attract well-heeled corporate travelers. The Westin will not be attracting consumers who prefer to pay the $80 a night to stay at one of the Stapleton hotels, he says. Nationally, airport terminal hotels have an 81% average occupancy rate and charge of $132. The Westin is projected to open with room rates starting at $141 per night, says Greg O’Stean, vice president of acquisitions and development for Starwood Hotels & Resorts Worldwide Inc., parent of Westin.

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