It’s tough getting a room

Posted 10/16/15

Do the math and the figures are astounding. During the Fridays and Saturdays of August, Warwick’s 16 hotels experienced a 96 percent occupancy rate, meaning virtually every one of the 2,237 rooms …

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It’s tough getting a room

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Do the math and the figures are astounding. During the Fridays and Saturdays of August, Warwick’s 16 hotels experienced a 96 percent occupancy rate, meaning virtually every one of the 2,237 rooms were rented for those nights. Now multiply 96 percent of those rooms – 2,167 – times the $400 Mayor Scott Avedisian says is the economic impact of a room rental and you come up with $866,800 for one night.

Naturally, the $400 is a projection but seems plausible. The average daily room rate for the month was $100.73. Then tack on at least $100 for meals for two, the cost of a tank of gasoline, tickets to a show or sporting event and a stop at Warwick Mall or another retail outlet and $400 is within reach. But remember, this is a projection of the “economic impact.” Those room rentals translate into jobs not only at the hotels but also restaurants and retail establishments. The ripple effect is significant. On the basis of those projections, the $400 now seems conservative.

Doing the math is a good exercise, yet equally important, if not more so, is understanding why this is happening and how best to play upon those points so to ensure continued economic benefit. A simple observation is that the overall economy is improving. People have more money to spend and they’re doing that. Specifically, in terms of Warwick hotels, the city is centrally located to Newport and Boston, where room rates are higher. With easy access to highways and the airport, Warwick likewise is a good jumping off place to other destinations, including Europe that became accessible this summer with Condor Airlines service to Frankfurt, Germany.

Much of the local marketing effort funded through hotel tax revenues focused on nearby Connecticut and Massachusetts. Some questioned whether these were wasted dollars as who would stay in a hotel when home is only a couple of hours drive away? The data shows otherwise with 52 percent of hotel visitors coming from our neighboring states.

Remarkably, during the summer months when Warwick hotel occupancy ran at 86 percent – the best in the recollection of some in the hospitality business – passenger traffic at Green Airport was practically flat. There’s no question the airport is the primary reason more hotel rooms have been built in Warwick than any other municipality or that business travel by air, rail or car, not the mini weekend vacations taken by our neighbors, is a foundation of the trade.

Hardly all of Warwick’s overnight visitors are here to get lower room rates while touring popular destinations like Newport and Boston or doing business out of town. Warwick is a designation for many, whether to participate in one of the popular dog shows piloted by the Crowne Plaza or compete in one of the regional tournaments and meets hosted by local groups.

The hotel occupancy rates disclosed recently are a testament of the hard work of those in the tourism business and an affirmation that the economy is improving and that Warwick is well positioned in the region.

Let’s not overlook, too, that Warwick’s 16 hotels are providing hundreds of jobs, not to mention $2.8 million in city taxes. While it’s nice to be hospitable, we love it when we hear it’s tough to find a room in Warwick.

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