Limited-Service Hotels Boost Local Economies

<H1>Limited-Service Hotels Boost Local Economies</H1>As new hoteliers in the Dallas area, we are surprised by the city of Arlington's consideration to commission a study to determine if the proliferation of limited-service hotels is damaging its opportunities to attract full-service hotels. Richard Marini's story on the "overgrowth" of limited-service hotels in the Dallas suburbs (BTN, April 8) made one thing clear: Local officials simply are not aware of the economics of the hotel industry.

As accurately cited in Mr. Marini's article, the majority of new hotel construction in the Metroplex mirrors what is occurring in other parts of the country-limited service. Why? Because these projects can attract the necessary financing, and full-service hotels still are less expensive to purchase than to build.

Furthermore, individuals such as Arlington Convention & Visitors Bureau director Burke Pease have not taken into consideration a very important industry trend: Full-service hotels are developing nationally at a much lower rate. Consumer demand is driving the growth of chains like AmeriSuites because of their increased appreciation for value and affordability. In today's financial marketplace, the practicality of full-service hotel development is difficult in most markets.

Further, on the plus side of tax revenue is the boom in signature restaurant chains-also driven by consumer demand. The most underused amenity of a full-service hotel is its restaurant (aside from breakfast). Limited-service accommodations encourage guests to patronize local establishments. High-occupancy, limited-service hotels plus high-volume signature restaurants equals an increase in tax revenues for the local market.

AmeriSuites, a limited-service, all-suite brand that recently opened its doors in Arlington and Irving, is the nation's fastest-growing all-suite chain, with 20 hotel openings planned for 1996. We plan to open a third Dallas metro area hotel later this year.

All-suite properties post higher occupancy rates and room rates than the hotel industry as a whole. In 1994, all-suite occupancies soared to 73.8 percent and room rates averaged at $84.43. Further, to claim that our segment's strong performance is not an asset to the economy of the communities in which we operate is unfounded. Does Mr. Pease not appreciate our tax dollars that will help pay for retiring the debt on the Arlington Convention Center? Are we not providing first-class new suites for the city's visitors, enhancing their ability to attract larger groups?

Officials also should be aware that AmeriSuites spends a sizable advertising budget, which heavily promotes the cities in which we have hotels in every national-brand advertisement and all sales collateral. The businessperson traveling to Atlanta who is enjoying his or her experience at AmeriSuites now knows there is an AmeriSuites to stay at in Arlington or Irving.

Mr. Pease's claim that limited-service hotels typically do not have marketing departments is categorically misleading. AmeriSuites boasts an aggressive team of local, regional and national sales representatives who are charged with the task of filling our rooms. While we greatly respect the role a CVB or Chamber of Commerce plays in helping inform travelers of our accommodations, we proudly take credit for most of our occupancy success.

AmeriSuites chose the Dallas Metroplex because of the unsatisfied demand for an affordable, limited-service, all-suite product in that market. AHMA president Ken Hine was exact in his assessment that market forces, not local officials, should determine how many limited-service hotels are necessary.