Comments on: Despite Marriott, county August hotel room tax collection fell 14% http://newslanc.com/2009/10/19/despite-marriott-county-august-hotel-room-tax-collection-fell-14/ News, Comment and Culture for Lancaster County Thu, 09 Feb 2012 01:50:20 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Anonymous http://newslanc.com/2009/10/19/despite-marriott-county-august-hotel-room-tax-collection-fell-14/comment-page-1/#comment-18583 Anonymous Tue, 20 Oct 2009 18:10:13 +0000 http://newslanc.com/?p=10044#comment-18583 This year will be very difficult to assess the true picture for what impact the new hotel will have on bed tax contributions. The three delays in opening dates caused significant financial hardship for the hotel whereas the convention center realized a financial benefit due to minimizing their scheduled financial losses. Rumor has it that the hotel displaced close to $1M in business as a result thereof. The occupancy assumption listed above is probably dead on due to the required ramp up time of a newly built hotel. It usually takes a new hotel at least 6 months to gain stability within a market. The low average daily rates were probably influenced by absorbing the business from the Brunswick as a concession to the downtown district. In a nutshell, it is too soon to tell and no more tax payer contributions! This year will be very difficult to assess the true picture for what impact the new hotel will have on bed tax contributions.

The three delays in opening dates caused significant financial hardship for the hotel whereas the convention center realized a financial benefit due to minimizing their scheduled financial losses. Rumor has it that the hotel displaced close to $1M in business as a result thereof.

The occupancy assumption listed above is probably dead on due to the required ramp up time of a newly built hotel. It usually takes a new hotel at least 6 months to gain stability within a market. The low average daily rates were probably influenced by absorbing the business from the Brunswick as a concession to the downtown district.

In a nutshell, it is too soon to tell and no more tax payer contributions!

]]> By: Anonymous http://newslanc.com/2009/10/19/despite-marriott-county-august-hotel-room-tax-collection-fell-14/comment-page-1/#comment-18562 Anonymous Tue, 20 Oct 2009 13:46:36 +0000 http://newslanc.com/?p=10044#comment-18562 Be aware that in order for the hotel tax to meet the projections that were presented to the Commissioners in 2003, to substantiate the bond guarantee, the Marriott would be solely responsible for providing a 15+% BOOST in tax revenues. Clearly that is not the case. Furthermore, my sources indicate that occupancy to date at the hotel fell well below 50% with an average daily rate less than $110/night during the height of the tourist season. These stats along with what is lackluster performance county-wide and a long cold winter ahead do not bode well.. Be aware that in order for the hotel tax to meet the projections that were presented to the Commissioners in 2003, to substantiate the bond guarantee, the Marriott would be solely responsible for providing a 15+% BOOST in tax revenues. Clearly that is not the case.

Furthermore, my sources indicate that occupancy to date at the hotel fell well below 50% with an average daily rate less than $110/night during the height of the tourist season. These stats along with what is lackluster performance county-wide and a long cold winter ahead do not bode well..

]]> By: Anonymous http://newslanc.com/2009/10/19/despite-marriott-county-august-hotel-room-tax-collection-fell-14/comment-page-1/#comment-18499 Anonymous Mon, 19 Oct 2009 23:52:09 +0000 http://newslanc.com/?p=10044#comment-18499 How long will it be until Penn Square Partners and company come to the city and county taxpayers DEMANDING more money to keep their pet project in operation? Where is all the income they promised would be generated by the convention center and hotel? Where are all the fancy numbers they used to support this project? Why don't they invest more of their own money if this is such a worthwhile project? Where are the answers to these questions? How long will it be until Penn Square Partners and company come to the city and county taxpayers DEMANDING more money to keep their pet project in operation? Where is all the income they promised would be generated by the convention center and hotel? Where are all the fancy numbers they used to support this project? Why don’t they invest more of their own money if this is such a worthwhile project? Where are the answers to these questions?

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