Big Easy Makes a Hospitality Comeback

NEW ORLEANS-The once 38,000-room New Orleans hospitality market is finally getting a whiff of recovery, with hoteliers seeing the strongest tourism and business-based growth since Hurricane Katrina devastated Louisiana, Alabama and Mississippi coastal areas in 2005. Now, 28 months later, a return of several large conventions in the fourth quarter last year, a spate of national sporting events culminating with the four-day NBA Championship, following an early two-week Carnival Season, has hoteliers seeing a strong start in 2008.

But across the board, hotel mangers, analysts and tourism officials predict serious weakening in the last two quarters of the year. Ernst & Young has listed New Orleans among the three lowest ranking cities for investor money in hospitality, along with Orlando and Dallas.

The Bowl Conference Championship in December saw 93% occupancy metro-wide, even though the teams playing were close and far — Louisiana State University versus University of Hawaii. That was followed by the Sugar Bowl, LSU versus Ohio State University, and Ohio fans turned out in droves to fill 95% of hotel rooms. The two week period of Carnival ending Mardi Gras day (Feb. 5), saw sell-outs at most major hotels in the weekend before Fat Tuesday and occupancy in the high 90% range.