Hotel Performance Up Slightly from 2001

PORTLAND-Most Portland hoteliers are reporting slightly improved performance in 2002 compared to 2001, according to the just-released fall survey by local hospitality specialist The Dundon Company.

Downtown operators reported a strong summer despite the opening of the 327-room Hilton Executive Tower in June. Airport operators also reported a strong summer. Indeed, occupancy during the all-important season for the industry increased by 6.3% in Portland and by 3.8% in the suburbs, according to the report.

Moreover, out of 174 hotels surveyed, Dundon reports that 39% raised their corporate rate by an average of $8.70. Another 40% kept the same corporate rate. The remaining 21% lowered their rates by an average of $8.30.

“Assuming Portland continues to follow national economic trends, most observers look for continued improved performance in the near future,” company principal Ed Dundon reports. One of those national trends is a lack of planned new construction. In Portland, no hotels are under construction and there are only three planned projects with 296 rooms, the same as in Dundon’s spring survey.

Looking forward, Dundon reports that Pricewaterhouse Coopers’ Hospitality and Leisure Practice predicts that occupancies during the fourth quarter will exceed 2001 by 1.4 points while ADR will be 4% over 2001. “Forecasts for 2003 get a little trickier with most prognosticators hedging their forecasts due to uncertainties of a war with Iraq,” writes Dundon.

Despite the positive news, woes continue for some operators. In recent weeks, secured creditors in the Shilo Inns bankruptcy case are asking for expedited payment of more than $204 million in debt and unpaid fees from the lodging chain’s founder Mark Hemstreet. Most of Hemstreet’s 46 motels have filed for bankruptcy protection.

As well, the Stevenson family of Bingen, Wash. has handed over the 217-room Greenwood Inn in Beaverton to lender General Motors Acceptance Corp. The hotel remains in operation while GMAC prepares to dispose of the asset. Dallas, Texas-based Prism Hotels has been appointed as receiver by Washington County Circuit Court and is managing the hotel on behalf of GMAC. The Stevenson family also owns the Heathman Lodge in Vancouver, Wash. and the Radisson adjacent Portland International Airport.