The Tri Cities have had some decent results," notes Barbieri, explaining that drive-to markets seem to be less affected than the major fly-to markets such as Seattle. "Yakima has also held up reasonably well since," the VP speculates--offering that the central location may be promoting attendance of meetings booked at hotels there because the attendees can reach the destination by car.
Andy Olson is president of the Chambers Group, a Seattle-based consultancy specializing in the hotel industry--with particular emphasis on Washington. Olson also says that how much business the state's hotels are seeing is largely a function of their location. "The larger, upscale hotels in the major markets like Seattle have experienced more difficulty."
"Group business is generally booked far in advance, so it's not the number of meetings that's dropping," Olson says continuing, "It's the attrition from the groups--a hotel is expecting 1,500 people for a function, but only 900 show because people don't want to fly. And that kind of drop in room rents really hurts." Echoing Barbieri's observations, Olson sees the drive-to markets possessing the edge--picking up occupancy with those willing to make the trip by auto.
Olson was attending a hotel industry conference in Los Angeles when GlobeSt.Com caught up with him. While he describes the overall market as "OK," he says the sentiment at the conference seems to be "2002 is going to be a tough year."
While the industry itself may be as sluggish as a sleep-deprived teenager, some investors seem to be betting better days are to come--at least for WestCoast Hospitality. When the company announced it had acquired the Red Lion brand on Dec. 31, West Coast's stock was floating around $6 per share. Since, it has been as high as $8/ss--closing out yesterday at $7.50.
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