Industry experts and stakeholders had mixed reactions to Monday’s announcement of two more potential hotels in downtown Baton Rouge.
While the proposed hotels are essential to the city’s efforts in attracting more convention business, the projects will ratchet up competition.
“Do I think we need those rooms to be a tier-2 convention center? Yes. But it’s going to be a very tough year with all the supply coming back in the market to pre-(Hurricane) Katrina occupancy numbers,” said Cherri Kieschnick, general manager of Homewood Suites.
Kieschnick, who also is past president of the Baton Rouge Area Hospitality Management Association, said the economy remains a concern for local hoteliers as well.
“Across the nation, you still see a strong average rate, but you never know what’s around corner,” she said.
The new downtown hotels have been proposed by Armada Hoffler, a Virginia company that said Monday it would spend $99.3 million on building them.
Armada Hoffler’s pledge is contingent, however, on East Baton Rouge voters’ approval of Mayor Kip Holden’s plan to expand the River Center with a nearly $1 million bond issue financed with increased sales and property taxes.
Plans call for razing the River Center’s west parking garage and building a 300-room, full-service hotel there. Another 140-room hotel would be added to the top of the east garage after its expansion.
Those new projects would join the old King Hotel. Cyntreniks plans to soon start restoring the building into a 95-room hotel. Moreover, developer Richard Preis said last week he now plans to turn his long-anticipated riverfront high-rise project into a 300-room hotel with an unspecified number of condominiums.
Combined with the Hilton Capitol Center on Lafayette Street and the Sheraton in Catfish Town, downtown would have a total of 1,435 rooms.
“I think that’s great, super,” said Davis Rhorer, head of the Downtown Development District.
Rhorer, citing a recent study by PKF Consulting conducted for the Convention & Visitor’s Bureau, said downtown needs a minimum of 1,000 rooms to support the River Center expansion project.
Rhorer predicted that all the new and proposed hotels would work well, because they’re varying styles and all walking distance from the River Center, a major advantage for convention-goers.
Jon Fels, a Baton Rouge-based hotel consultant and industry veteran, agreed that the added rooms are crucial to attracting more conventions. But he said that, depending on Armada Hoffler’s specific plans, its hotel rooms must fetch at least $150-$200 a night to be successful.
Fels also expressed concern about the city’s ability to attract enough events to keep all the downtown hotels successful. Other area cities, like Lafayette and Alexandria, are making similar efforts to attract more convention business.
“All I can say is good luck,” he said of the Armada Hoffler proposal. “I personally suggest they really do their homework.”
Tina Rance of Ashby Hospitality, the company that manages the downtown Hilton, said Hilton welcomes the development. She said an expanded convention center and more hotel rooms will help the Baton Rouge market attract more hospitality business.
An official with the downtown Sheraton could not be reached for comment Monday.
Advocate business writer Chad Calder contributed to this report
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