Hotels predicting strong summer months
Occupancy anticipated to increase; room rates going up

By Katherine Michalets - Special to The Freeman

May 21, 2013

Matt Drusch, director of sales at Brookfield Suites, talks with Carolyn Hahn, Brookfield Suites’ public relations director, in the atrium of the hotel.
Charles Auer/Freeman Staff 

BROOKFIELD – While the trend in recent years has been the staycation, statistics are showing people will once again be hitting the road and staying in hotels for their summer vacations.

Matt Drusch, director of sales and marketing for Brookfield Suites Hotel & Convention Center, said as of May 1, the hotel was showing a 15 percent increase in hotel reservations for the months of June, July and August compared to the same period last year.

Nationally, the trend is similar, according to a recent study by STR, which tracks supply and demand data for the hotel industry. STR is predicting occupancy will increase by 1 percent to 70 percent for June, July and August when compared to those three months in 2012. The average daily rate will increase 4.4 percent to $112.21 and revenue per available room will grow 5.4 percent to $78.50, according to a recent STR news release.

“The pickup has been fairly strong going into the month,” Drusch said. He said during the past few years advanced reservations for those months have been soft.
 


Events and renovations
 

“A lot of it does have to do with the big events going on,” Drusch said, indicating Harley-Davidson’s 110th anniversary party in August.

Other demand comes from travelers wanting to see the Brewers, the Milwaukee County Zoo and other area attractions. Brookfield Suites Hotel & Convention Center markets its Brewers package strongly, Drusch said.
 

A bedroom in a standard suite at Brookfield Suites.
Charles Auer/Freeman Staff 

The predicted increases for Olympia Resort Hotel, Spa & Conference Center in Oconomowoc are even greater.

Fred Fischer, director of sales, said occupancy for last June was 61 percent and is predicted to go up by 1 percent this year. The biggest jumps come in July and August. Last July, Olympia Resort had 44 percent occupancy and is predicting 52 percent this year. In August last year, there was a rate of 42 percent occupancy, and this year that month is anticipated to have a 59 percent occupancy rate.

“The word is out that we have done a pretty good renovation,” he said.

The resort finished renovating the hotel rooms last month and will be opening up a new bar, Cricket’s Lounge, soon. A new website has also been launched.



Age, uniqueness are draws for Clarke Hotel
 

The Clarke Hotel in downtown Waukesha is already seeing a 7 percent increase in room occupancy this year so far compared to last year.

Sean Skellie, vice president of Inn Development and Management, which was hired as a short-term consultant to provide operating procedures, property management system, Internet and GDS presence and bookkeeping services for The Clarke Hotel, said business and leisure travelers are back. He contributes this to an improving economy. Most customers are still staying within a driving range of home, Skellie said.

For the summer months, Skellie said they are anticipating about a 5 percent to 10 percent increase in occupancy rates compared to the same months in 2012.

What’s also helping to draw people to The Clarke Hotel is the age of the hotel and its uniqueness.

“Today’s travelers are looking for something more special,” Skellie said. 


Promoting tourism equals increased occupancy 

Trisha Pugal, president and CEO of the Wisconsin Hotel & Lodging Association in Brookfield, said the organization is hearing a variety of reports from hotel members around the state regarding occupancy rates.
 

The atrium of Brookfield Suites.
Charles Auer/Freeman Staff 

“Overall we are hearing there is an increase that is being predicted. Naturally it’s a prediction; it’s not a certainty,” Pugal said. “Everyone seems to be pleased and hopeful that the continued investment in promoting tourism in our area will pay back by bringing in more people.”

Investing in promotion of tourism through the state budget and at local levels, as well as by individual businesses, is key to growing the hotel occupancy rate, Pugal said.

“The Milwaukee area in general is up year to date,” she said. “That’s good news too. And obviously we want to keep that trend going and keep promoting and attracting visitors to the area.”

About 70 percent of customers at Brookfield Suites Hotel & Convention Center are from Wisconsin, Drusch said, but the hotel also hosts many guests from Chicago who stay there to go shopping in the Brookfield area and pay less in sales tax than in Illinois.

Brookfield Suites is also marketing around the region.

“Milwaukee is becoming one of those cities where people are willing to go out and see what is going on,” Drusch said.

The average room rate is also going up, Drusch said, which is another plus because that is what drives revenue for hotels.

“It tells us people are willing to spend more to travel,” he said.