Hotels roll out the red carpet

Rates up, occupancy down; Marriott profits slide 24 percent

Still, the rising room rates weren’t enough to help Maryland hotels boost per-room sales last month. Revenue per available room in Maryland declined to $90.78 in June from $92.75 a year ago, according to Smith Travel figures, which covered June 1 to June 28.

That trend of declining occupancy and increasing room rates has been occurring over the past few years, said Christopher A. Zindash, past board president of the Conference and Visitors Bureau of Montgomery County. In June 2005, occupancy throughout Maryland hotels was at 78 percent, while room rates averaged about $113.

‘‘This is expected to continue into the foreseeable future,” said Zindash, also general manager of the Crowne Plaza Rockville and Rockville Sleep Inn. ‘‘We are seeing a softening of the summer leisure traveler. I’m sure the combination of high fuel prices and economic pressures on the pocketbook are the factors determining vacation travel this summer.”

His hotels have seen a decent June and July so far in group business, but individual travelers are more cost-conscious. ‘‘We are seeing more aggressive discounts than in prior years,” Zindash said.

Vira Safai, managing partner of the Comfort Inn Shady Grove in Gaithersburg, said his hotel has seen an increase in corporate business, but the individual segment has slacked off some. His hotel is beefing up its services, such as a bigger breakfast.

‘‘We want to build up the value for our customers,” Safai said.

Gas cardsa popular lure

The Comfort Inn hotel is part of the Choice Hotels International network. The Silver Spring franchiser is offering members of its Choice Privileges rewards program who stay three separate times by Aug. 14 a $50 gas card.

Revenue at Choice last year was up by 14 percent to $615.5 million from 2006. Net income, however, fell 1.3 percent to $111.3 million. First-quarter 2008 profits were back up by 14 percent.

Numerous Marriott hotels in suburban Maryland, Northern Virginia and Washington, D.C., are offering a package that includes a $25 gas card from Chevron with a two-night minimum stay through Sept. 1.

On Thursday, Marriott International of Bethesda reported that 2008 second-quarter net earnings dropped by 24 percent to $157 million from a year ago, as U.S. hotel room demand declined. Profits for the first half of the year were down 29 percent. The company cut its 2008 estimate of earnings per share and revenue per room.

‘‘While our hotels outside the U.S. continue to benefit from solid global demand, business conditions have deteriorated in the U.S.,” CEO J.W. Marriott Jr. said in a statement. ‘‘While there is much uncertainty, we expect weak economic growth and soft U.S. lodging demand to persist into 2009.”

Also through Sept. 1, many hotels in Baltimore are offering a ‘‘stay two nights, get the third night free” promotion through the Baltimore Area Convention and Visitors Association, which is also offering new summer coupons to local attractions such as the World Trade Center observation deck. Some hotels, including the Tremont Grand and Tremont Plaza in Baltimore, are waiving parking fees, which can reach $30 per night there.

At the 288-room Greenbelt Marriott, occupancy has been steady throughout 2008 and has remained similar to last year’s levels, executives said. Besides the gas card promotion, the hotel has added family breakfast packages and more AAA discounts this summer.

With more airlines charging to check luggage, Marriott and The Luggage Club recently launched a program to allow members to redeem points for gift cards to ship luggage from their homes or offices to their travel destinations.

‘‘We sought out this partnership because our members have told us that they want services to make travel easier,” said Laurie Goldstein, a Marriott spokeswoman. ‘‘We have also heard from members that air travel is the most stressful part of their travel experience. This seemed to be a good fit with our program.”

More tourists,more dollars

About 28 million visitors to Maryland spent $11.4 billion in 2006, a 6.5 percent increase over 2005, according to the Maryland Office of Tourism. In 2006, the Maryland tourism industry generated more than $895 million in state and local taxes, a 5.4 percent jump from 2005.

The top activities for Maryland visitors in 2006 were dining, 37 percent; shopping, 24 percent; sightseeing, 17 percent; and general entertainment, 17 percent.

More visitors — defined as those traveling at least 50 miles from home — come from Maryland than from other states. Pennsylvania, Virginia, New Jersey and New York are next.

The top Maryland tourist destinations are Baltimore and Ocean City. More than 40 percent of Maryland travelers visit either city.

Hotel occupancydown, room rates up

Hotel occupancy for June throughout Maryland declined to 72 percent from 74.9 percent in June 2007, 77.2 percent in June 2006 and 78 percent in June 2005, according to Smith Travel Research.

Average daily room rates in Maryland for June rose to $126.13 from $121.94 in June 2007, $119.65 in June 2006 and $113.25 in June 2005.