City's hotel market suddenly red hot

Business climate and BRAC behind surge, observers say

Sunday, December 03, 2006

By JOHN PECK

Times Staff Writer john.peck@htimes.com

Huntsville's hotel market has awakened after slumbering since the opening of the Huntsville Marriott in 1986.

Five hotels with a combined 684 rooms have opened in the last year and a half, capped with the Nov. 1 grand opening of the Embassy Suites Convention Hotel downtown. A Homewood Suites opened days earlier in the Village of Providence.

Another five hotels with a combined 542 rooms are under construction with openings planned next year. They include Westin - the city's first four-star hotel - in the $210 million Bridge Street Town Centre development in Cummings Research Park, and the city's second Hilton Garden Inn.

And at least two more hotels with a combined 450 rooms are planned for the MarketSquare mall site beside the Von Braun Center downtown.

Judy Ryals, executive director of the Huntsville-Madison Convention & Visitors Bureau, said Huntsville's strong business climate along with a growing sports and tourism industry are catching the attention of hotel developers.

"I do think, overall, the hotel business is good, particularly in the Huntsville market," she said.

Ryals said the thousands of military and defense-related jobs coming here through BRAC may be driving some of the investments with expectations of more business travelers.

"It's not only BRAC, but all the new and expanded businesses that will mean more conferences, training and trade shows. Huntsville is more on the radar screen," she said.

Boost for VBC

Ryals said she is especially pleased with the prospect of two more downtown hotels. Those 450 additional rooms, plus the 295 rooms at the Embassy Suites and the 273 offered by the Holiday Inn (formerly the Hilton Huntsville) across the street, will boost the city's ability to attract more events and larger groups.

"We're excited to get additional rooms in the downtown area connected to the Von Braun Center because we have been hindered in past years to bring in the types of conventions that we could have brought in if we'd had more rooms there," she said.

Large-meeting planners sometimes can be hooked with promised shuttles from outlying hotels. But many turn away if the number of rooms they need aren't within walking distance to their meeting space, she said.

Charles Winters, vice president of marketing for the Convention & Visitors Bureau, said Huntsville offers a good mix of hotels that appeal to different levels of need: economy, limited service, full service and luxury. Tourists, sports tournaments and religious events help fill rooms during the weekend, while trade shows, seminars and business activities pack them during the week.

"We have continued to see a real growth in the sports market, which has been a continuing growing market segment within the pie," Winters said. "We partner with the Huntsville Sports Commission to bring in those groups: volleyball, soccer, Frisbee golf. It's amazing how many different events there are."

Winters said city leaders have worked hard to make all of Huntsville a destination. The Convention & Visitors Bureau has increased its participation in tourism and convention trade shows to promote the city to large-meeting planners.

Breaking 'barrier'

Winters said the Embassy Suites helped break a "psychological barrier" by pushing the number of rooms near the VBC to more than 500. Winters said some scouts would immediately end their searches if that many rooms weren't available.

"We would offer in the first sentence a shuttle system," Ryals said, "but they would say, 'No, we can go to too many other cities and our delegates won't be inconvenienced by having to get a motorcoach to the downtown area.' We'd offer to provide other incentives, but so often they just weren't interested."

Local developer Scott McLain, who owns the MarketSquare site off Clinton Avenue and Memorial Parkway, said hotel occupancy rates and room charges have steadily risen since the Sept. 11, 2001, terrorist attacks that chilled the travel market.

"Huntsville is a growing market, and when the national market says build hotels, developers say, 'Let's build in a growing market like Huntsville.' "

McLain plans two hotels on the MarketSquare site that will be part of a $100 million-plus development featuring restaurants, offices, condominiums or apartments, and a parking deck. He hopes to announce the hotel brand by next summer or fall and complete the development probably a year later.

National trend

Tom Hazinski, managing director of a hotel consulting firm in Chicago, said Huntsville's hotel boom is part of a national trend. Noting that many of Huntsville's newest hotel announcements are affiliated with the Hilton chain, Hazinski said Hilton has been among the most aggressive in developing new properties.

Business travel is the primary driver for Huntsville's hotel market, said Hazinski, with HVS Convention, Sports & Entertainment Facilities Consulting. "There are a lot of defense-industry-related companies" that make the city an attractive market.

Joe Vallely, the city's economic development director, said hotel developer John Q. Hammons' 2004 decision to build the $40 million Embassy Suites downtown may have brought Huntsville to the attention of other hotel developers. Hammons is recognized nationally as a leader in the hotel industry.

"They figure he's on to something," Vallely said.

Not all the latest hotels are clustering downtown. Among the newer properties are Value Place Extended Stay Hotel in Madison near Wal-Mart, Hilton Garden Inn near the U.S. Space & Rocket Center (another Hilton Garden Inn has been announced for south Huntsville); Microtel Inn & Suites along U.S. 72 East; and Cambria Suites along University Drive near Cummings Research Park.

The newest hotels will boost to nearly 6,000 the number of rooms available in Huntsville and Madison. Travel-related spending in the county last year was up 6 percent from the previous year's total of about $646.6 million.



City's hotel market suddenly red hot Business climate and BRAC behind surge, observers say Sunday, December 03, 2006 By JOHN PECK Times Staff Writer john.peck@htimes.com Huntsville's hotel market has awakened after slumbering since the opening of the Huntsville Marriott in 1986. Five hotels with a combined 684 rooms have opened in the last year and a half, capped with the Nov. 1 grand opening of the Embassy Suites Convention Hotel downtown. A Homewood Suites opened days earlier in the Village of Providence. Another five hotels with a combined 542 rooms are under construction with openings planned next year. They include Westin - the city's first four-star hotel - in the $210 million Bridge Street Town Centre development in Cummings Research Park, and the city's second Hilton Garden Inn. And at least two more hotels with a combined 450 rooms are planned for the MarketSquare mall site beside the Von Braun Center downtown. Judy Ryals, executive director of the Huntsville-Madison Convention & Visitors Bureau, said Huntsville's strong business climate along with a growing sports and tourism industry are catching the attention of hotel developers. "I do think, overall, the hotel business is good, particularly in the Huntsville market," she said. Ryals said the thousands of military and defense-related jobs coming here through BRAC may be driving some of the investments with expectations of more business travelers. "It's not only BRAC, but all the new and expanded businesses that will mean more conferences, training and trade shows. Huntsville is more on the radar screen," she said. Boost for VBC Ryals said she is especially pleased with the prospect of two more downtown hotels. Those 450 additional rooms, plus the 295 rooms at the Embassy Suites and the 273 offered by the Holiday Inn (formerly the Hilton Huntsville) across the street, will boost the city's ability to attract more events and larger groups. "We're excited to get additional rooms in the downtown area connected to the Von Braun Center because we have been hindered in past years to bring in the types of conventions that we could have brought in if we'd had more rooms there," she said. Large-meeting planners sometimes can be hooked with promised shuttles from outlying hotels. But many turn away if the number of rooms they need aren't within walking distance to their meeting space, she said. Charles Winters, vice president of marketing for the Convention & Visitors Bureau, said Huntsville offers a good mix of hotels that appeal to different levels of need: economy, limited service, full service and luxury. Tourists, sports tournaments and religious events help fill rooms during the weekend, while trade shows, seminars and business activities pack them during the week. "We have continued to see a real growth in the sports market, which has been a continuing growing market segment within the pie," Winters said. "We partner with the Huntsville Sports Commission to bring in those groups: volleyball, soccer, Frisbee golf. It's amazing how many different events there are." Winters said city leaders have worked hard to make all of Huntsville a destination. The Convention & Visitors Bureau has increased its participation in tourism and convention trade shows to promote the city to large-meeting planners. Breaking 'barrier' Winters said the Embassy Suites helped break a "psychological barrier" by pushing the number of rooms near the VBC to more than 500. Winters said some scouts would immediately end their searches if that many rooms weren't available. "We would offer in the first sentence a shuttle system," Ryals said, "but they would say, 'No, we can go to too many other cities and our delegates won't be inconvenienced by having to get a motorcoach to the downtown area.' We'd offer to provide other incentives, but so often they just weren't interested." Local developer Scott McLain, who owns the MarketSquare site off Clinton Avenue and Memorial Parkway, said hotel occupancy rates and room charges have steadily risen since the Sept. 11, 2001, terrorist attacks that chilled the travel market. "Huntsville is a growing market, and when the national market says build hotels, developers say, 'Let's build in a growing market like Huntsville.' " McLain plans two hotels on the MarketSquare site that will be part of a $100 million-plus development featuring restaurants, offices, condominiums or apartments, and a parking deck. He hopes to announce the hotel brand by next summer or fall and complete the development probably a year later. National trend Tom Hazinski, managing director of a hotel consulting firm in Chicago, said Huntsville's hotel boom is part of a national trend. Noting that many of Huntsville's newest hotel announcements are affiliated with the Hilton chain, Hazinski said Hilton has been among the most aggressive in developing new properties. Business travel is the primary driver for Huntsville's hotel market, said Hazinski, with HVS Convention, Sports & Entertainment Facilities Consulting. "There are a lot of defense-industry-related companies" that make the city an attractive market. Joe Vallely, the city's economic development director, said hotel developer John Q. Hammons' 2004 decision to build the $40 million Embassy Suites downtown may have brought Huntsville to the attention of other hotel developers. Hammons is recognized nationally as a leader in the hotel industry. "They figure he's on to something," Vallely said. Not all the latest hotels are clustering downtown. Among the newer properties are Value Place Extended Stay Hotel in Madison near Wal-Mart, Hilton Garden Inn near the U.S. Space & Rocket Center (another Hilton Garden Inn has been announced for south Huntsville); Microtel Inn & Suites along U.S. 72 East; and Cambria Suites along University Drive near Cummings Research Park. The newest hotels will boost to nearly 6,000 the number of rooms available in Huntsville and Madison. Travel-related spending in the county last year was up 6 percent from the previous year's total of about $646.6 million. © 2006 The Huntsville Times © 2006 al.com All Rights Reserved.