Big convention hotel could bring in mega-bucks
http://www.sltrib.com/news/ci_14450780
" It might hurt, but not for long.
That's the prognosis for private hoteliers if Salt Lake County builds a 1,000-plus-room headquarters hotel near the Calvin L. Rampton Salt Palace Convention Center.
While private hotels might lose business and money at first, they likely would rebound within five years and potentially capture more guests and higher room rates than they would without a convention hotel, according to a report released this week by Denver-based STR Analytics. "
" Although the study found most convention markets improved with a headquarters hotel, some didn't. Private hotels didn't bounce back in St. Louis and Tampa, Fla., after convention hotels were built.
So from Mundel's perspective, there should be some caution in moving forward. "Every market will react differently," he warned.
Mundel isn't alone. An "undercurrent of anger" exists within Utah's lodging community toward the idea of a headquarters hotel, according interviews conducted by STR Analytics. Hoteliers worry about losing business and argue that government would be using its power and influence to build a competitor that would be larger than the state's now-largest hotel, Little America, which boasts 850 rooms.
"This hotel -- if and when it would be built -- causes the private sector to really be at an unfair disadvantage," said Bruce Fery, general manager of the Grand America Hotel, who urged government to 'let the free market work instead.' "