UNO reports N.O. hotel industry back in black

New Orleans CityBusiness, Aug 15, 2007

The Crescent City hotel industry is nearly back to pre-Katrina strength, according to the Greater New Orleans Hotel and Lodging Association President Fred Sawyers, general manager of the Hilton Riverside.

"Overall we are pleased with the progress and the contributions of our industry," Sawyers said. "Hotel property and room inventory are steadily moving back to pre-Katrina levels. Hotel investments have exhibited a clear and steady growth and the tax base that we provide has been consistent and growing since just a few weeks after the storm."

John Williams, director of the University of New Orleans's Lester E. Kabacoff School of Hotel, Restaurant and Tourism Administration, reported hotel occupancy rates have maintained consistent levels after hotel rooms rebounded from 22,598 available immediately following the storm to more than 31,000 today. There were 38,000 rooms before the storm.

HOTEL ROOM SUPPLY

Pre-Katrina__ Post-Katrina__ __

2005__ 2005__ 2006__ 2007 through March

38,505__ 22,598__ 29,734__ 31,888

OCCUPANCY

Pre-Katrina__ Post-Katrina__ __

2005__ 2005__ 2006__ 2007 through March

72.16 percent__ 64.81 percent__ 64.42 percent__ 70.3 percent

There are 209 metropolitan area accommodations open. The 250- room Hilton St. Charles Hotel opened in June. The new Harrah's Hotel opened in September 2006 followed by the Ritz-Carlton and Chateau Sonesta in December 2006. The Hyatt Hotel plans extensive renovations and will reopen in 2009 with more than 1,100 rooms.

The Hilton Riverside, the city's largest hotel, is in the midst of a $66-million renovation. The Marriott New Orleans has a $38- million renovation under way. Among other hotel properties engaged in upgrades are the Baronne Plaza and the Prince Conti in the French Quarter. The historic Pontchartrain Hotel on St. Charles Avenue recently will soon begin a multimillion-dollar renovation expected to take up to eight months to complete.