Hotel Talks Heating Up—How Many Rooms Are Needed?
Monday, April 08, 2013
New hotels on the horizon for Worcester -- how many rooms does the city need?
On Tuesday April 9th, the Worcester City Council is slated to consider a seven-year tax increment financing (TIF) deal for a planned 5 story, 100 room Hampton Inn and Suites hotel north of Lincoln Square. Developer SXC Prescott Street Development would get an estimated property tax savings of more than $1 million in the deal.
Tuesday's meeting comes on the heels on today's joint meeting of the City Council's Public Safety and Economic Development committees to disseminate information to the public -- and receive public testimony -- about the Mass Gaming & Entertainment, the MA-affiliate of Rush Street Gaming, slots proposal. Developer Richard L. Friedman of the Cambridge-based Carpenter & Company has expressed interest in building a hotel nearby, with plans of approximately 150-250 rooms in an upscale development. Today's hearing will be at 6:30 p.m. at the Worcester Hibernian Cultural Centre at 19 Temple Street.
Worcester's Changing Hotel Market -- and Occupancy Rates
In 2010, the number of overnight hotel rooms in Worcester stood at approximately 900, with seven hotels in the city. However, when the Massachusetts College of Pharmacy and Health Sciences (MCPHS) took over the former Crowne Plaza hotel, the loss of 248 rooms saw the current stock drop by nearly 25 percent down to 750 rooms at the six remaining hotels.
Despite the tightening of the market, recent numbers from the Central Massachusetts Convention and Visitors Bureau, which collects hotel data from both Worcester and surrounding areas, showed that hotel occupancy rates, which are anonymously and voluntarily reported to the CVB, were at 68% for the past six months.
Destination Worcester cited higher numbers for the city proper, with nearly 78% occupancy rates in 2012, up from 76% in 2011, and 65% in 2010.
"We Need New Business"
Mark Waxler, who is Vice President and General Manager at Worcester's Beechwood Hotel and on the Board of Advisors for Destination Worcester, has spoken out for the need of increased business presence in Worcester to make any new hotel plans work.
"If we're talking about adding 350 rooms to the Worcester inventory with the two potential developments on the table, we're talking about having to fill an additional 250-260 rooms -- nightly -- to not adversely impact the existing market," said Waxler. "We've been doing a good job of bringing big events to Worcester, and the CVB and Destination Worcester have talked about how we've had to turn away events because we can't meet the demands of big groups who need large blocks of rooms and meeting space, but those only fill the rooms on the nights that they're here."
Waxler continued, "We'd have to see a critical mass of additional events -- not just say 10 or 12 over the course of the year -- to make this work. What the city really needs is steady demand, and that comes from growth in the business community."
Bob Murdock, Director of Sales with Destination Wocester, said there is "absolutely a need" for additional hotel rooms in Worcester, and that Destination Worcester has in fact had to turn away events due to lack of room "blocks" for large groups looking to schedule events in the city.
Still, Waxler sees the events and convention business as only being one piece of the puzzle. "Hopefully, with JetBlue coming here in the fall, and especially the development of City Square, Gateway Park and the biotech industries, we'll see some traction for a constant increase in visitors. But right now, it's a bit of chicken-and-the-egg. If we build it, will they come? I certainly hope so. But only time will tell."
Would Slots be a Factor?
A recent study released by the Center for Policy Analysis at UMass-Dartmouth showed that gaming numbers in the region have gone down in recent years, finding that 52 percent of residents in five New England states (Vermont wasn't surveyed) participated in some form of legal gambling from January 2012 to January 2013, which was down 7 percentage points from 2006. Casino gambling was the third-most frequent type of gambling in 2012.
In an article in the Worcester Business Journal last month, it was also noted that the survey found that people are willing to travel farther to resort casinos, while those who patronize slots parlors or racinos value the convenience offered by close proximity. Nearly three-quarters of Foxwoods visitors traveled more than an hour to the full-scale casino, while 89 percent of visitors to Twin River a slots-only parlor in Lincoln, R.I., traveled an hour or less. Twin River recently had a referendum approved in Rhode Island expanding its operations to include table games.
When Rush Street Gaming representatives met with Worcester officials recently, CEO Greg Carlin noted that when considering a gaming operation, they consider a 30-minute drive as its operational area, and the Worcester area would encompass up to 750,000 people.
Related Articles
- Worcester Councilors Want Public Input on Proposed Slots Parlor
- Lack Of Hotels Costing Worcester Economy
- Could A Slots Parlor Take Off In Worcester?
- Is A Slots Parlor A Good Choice For Worcester?
- Slots in Worcester - A Play by Play
- Survey Highlights Potential Impact of Worcester Slots Parlor
Follow us on Pinterest Google + Facebook Twitter See It Read It