A study of the Ridgeland lodging market said that northern Ridgeland hotels enjoy a high occupancy rate. The Ridgeland Tourism Commission commissioned Young Strategies of North Carolina to review the market. Berkeley Young presented the study to the Ridgeland Board of Aldermen at a work session Monday night. He said the study showed the market was "a tale of two Ridgelands."
The study divided the market into two districts that were north and south of the Natchez Trace Parkway. The hotel occupancy north of the parkway averaged 75% while the southern district averaged 58%. The overall occupancy rate for the Ridgeland market over the last twelve months was 65.8%. Mr. Young said 65% is the minimum sustained occupancy rate that hotel chains consider before opening new hotels in a market.
Some findings of the study are:
*58% of Ridgeland's hotels were built after 2000. The northern hotels were built after 2008 while 68% of the southern hotels were built before 2000.
*The northern hotels have more business travelers that boosts their occupancy rates to nearly 90% during the week. However, their occupancy decreases on the weekends and is almost even with the southern hotels. Such travelers are 60% of the northern hotels but only 23% of the southern hotels even though they are cheaper in the south. The study considers the northern side of the parkway to be a "strong business market." See p.5 for a chart of the occupancy per days of the week.
*Oddly enough, the southern hotels outperform the northern hotels for group/conference bookings. These bookings are 45% of the rooms sold in the south but only 32% of rooms sold in the north.
*There are 16 hotels in Ridgeland that have 1,682 rooms. See p.2 in the study posted below for a listing of all hotels, year built, and total number of rooms. There are 1,129 rooms in the south that comprise 67% of the lodging inventory and 553 in the north that are 33% of the inventory.
*The types of hotels are sharply divided by the parkway. There are eight levels of property classifications for hotels. Ridgeland hotels land in five of those designations: Upper Upscale (1), Upscale (5), Upper Midscale (4), Midscale (1), and Economy (5). The 5 hotels in the north have upper midscale to upper upscale classifications. The southern district has a more diverse mix of hotels. It has hotels that are classified as upscale (3), upper midscale (2), midscale (1), and economy (5). See p.5.
The northern market is suffering from the lack of a large meeting facility. The study recommends recruiting a hotel developer to build a hotel that should have a meeting space with a capacity of 500 people. It says "under no circumstances should the city or county build or manage a conference facility."
There is currently a moratorium on new hotel construction in Ridgeland. The Aldermen said they wanted to review the study before lifting the moratorium. Developers want to build a Holiday Inn Express and Hilton Tru on the I-55N frontage Road by West Ridgeland Avenue.
Alderman Chuck Gautier was present during the presentation and discussion although no vote was taken. He is a broker for Kerioth Corporation.
Kingfish note: Interesting. The numbers seem to work for allowing more hotels in northern Ridgeland. What will the aldermen do? What should be done to improve the southern hotels?
21 comments:
Very interesting study. Obviously, the Board is trying to balance maximizing opportunities for demand in the North while trying to avoid undue harm to investments in the South. I appreciate the challenge this brings for community leaders and applaud the pensive approach.
Interesting. The "southern" hotels are basically in Jackson, just on the north side of County Line, clustered in the I-55 area. That really is a different market "down there". I was having a hard time picturing hotels in Ridgeland south of the Trace till I checked a map, then it was like, "Oh, yeah, that is Ridgeland, isn't it?"
I work in The Township and don't notice the existing three hotels on the south end of this development (though part of the north in the Young study) being that busy, but I guess they are. As far as a convention center, looks like Kerioth has that taken care of in their plan for completion of this area, with two more upscale hotels, convention center and "chapel venue".
Why would anyone stay somewhere other than Madison?
People gravitate to newer hotels because newer hotels are usually nicer. Build a bunch of new hotels in South Ridgeland and watch the numbers shift.
Further proof that Ridgeland is jsut riding on Madison's coat rails. Ten years from now you won't be able to tell the difference in Ridgeland and Jackson
Will Ridgeland have to lift the moratorium to allow Kerioth's next two hotels in the Township, or were those approved before this cock and bull moratorium was put in place?
Southern Ridgeland is already just like Jackson, 10:50.
10:50,
I give it 5 years or less. Northpark will look just like The Metro Center.
When Buster Bailey spearheaded the development of Highland Colony Parkway I said he should have never carried the road any further south than Old Agency---Time will tell-----------.
As I posted on the other blog, my recommendation for a convention hotel came without a study, nor did I attend this work session. Ridgeland can hire me for a fraction of the price next time. But, unless it has more space than the 30,000 sq ft at the Beau then it is pointless. Jackson Country club can feed 500 for what's its worth, but it is busting at the seams. Have to think big. 500 for dinner, a band, a head table. Another ballroom for vendors or flexible pre-function space, breakouts, etc. Put a high rise hotel right along with Lord Snow and C-spire and watch it thrive!
I have some educated thoughts on the natatorium they want to build too. The numbers in the that pro-natatorium study where greatly flawed.
11:45 Did you actually tell Buster, or was this simply something you were dreaming about between customers at the drive-through window?
12:05,
I do occasionally work at the drive-thru window because I own 33 fast food restaurants. I guess you let that smart mouth of yours overload itself this time.
90% occupancy? Hmmm what will the alderman and Chuck find next?
It's called CORRUPTION
Ha, like Ridgeland is a continent or something. South Ridgeland. That’s funny.
The Township is developing way too many hotels. It is contrary to the original vision. Good for May McGee and the Aldermen for taking a look. Would you all bashing them say the same if Mary limited something? I doubt it.
What the Gold Coast was to Rankin County, the old Zebra Motel was to Ridgeland!
Now I understand why my order is often screwed up at the drive-thru.
Hurry and get more lodging rooms available. Since Mayor Mary and her band of puppets have approved (by special exception and honorable decree) continuation of the Annual Richardson Light Show and Megawatt Christmas Tacky Pageantry, people will be driving in from all adjoining states. They gotta stay somewhere. And Taco Bell is completed just in time.
Has anyone happened to notice that a brand new Westin hotel was just built downtown with all of the meeting capabilities people are discussing? The place is beautiful!! It's a whole 12 min drive from Ridgeland. I ate recently at their new restaurant which is now one of the best in town. The hotel even has a spa.
@7:40 Did you fail to notice the third world country conditions around it? How many potholes did you hit on the way? Do you think if the owner put 100% of his funds in it, that the project would happen or be viable?
Actually, the Westin can only accommodate around 470 for a banquet with a head table. Marriott ballroom is bigger. Still not big enough for a decent conference with multiple breakouts, general sessions, and meals without a lot of trouble. And it only has 208 rooms. Means large groups will need overflow at one of the hotels down the street. Nice yes. Great for smaller groups, wedding receptions, and similar yes. Ability to bring in a 3 or 4-day conference of any real size nope. And, as mentioned, not a lot of entertainment within a decent distance without getting in your car.
Study clearly shows a demand for hotel rooms. The city must be purposely trying to hold developer up due to other obligations and campaign donations.
Let's not get carried away @7:40. The new restaurant at the Westin looks nice enough and makes for a nice meal, but it wouldn't make the cut for top 10 best restaurants. Give it some time.
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