Strong Madison Economy Keeps Rooms Scarce

<H1> Strong Madison Economy Keeps Rooms Scarce</H1>By Robert Selwitz

<I>Madison, Wis. </I>- It's getting a lot tougher for business travelers to casually bunk down in Madison, Wis. Whether it's the recent spate of plaudits such as <I>Money Magazine</I>'s choice of Madison as "the best place to live," or similar kudos calling Wisconsin's capital one of America's best sites to start a small business, hotel rooms are becoming harder to find, particularly on a spur-of-the-moment notice.

In the past, "business travelers were getting away without having corporate contracts set up," according to Steve Zanoni, vice president of sales and marketing for the 400-room Madison Concourse Hotel, the city's largest property. "That's changing now. We've seen a real increase in group and convention bookings. Often, that means people need contracts in order to ensure they can get the room they want when they want it."

Madison's three-pronged economy keeps unemployment low and visitations high. The University of Wisconsin is not only one of America's largest institutions of higher learning, but one of the best. In particular, its renowned graduate schools are the source of numerous group and meeting business.

Also, its sports teams-in particular its football Badgers that regularly pack 76,129-seat Camp Randall Stadium-fill up hotels for miles around. Then there's the state capital, which draws legislators, lobbyists, and state and regional groups for whom Madison is their prime destination.

With all this, however, the private sector is not overlooked in Madison. Key corporations based here include Oscar Meyer Co., Rayovac and a swath of insurance companies including CUNA Mutual and American Family Insurance. Madison also is home to the World Council of Credit Unions and the International Credit Union Center.

According to Deb Archer, president of the Greater Madison Convention and Visitors Bureau, the current stock of 5,500 hotel rooms-including 4,600 in Madison proper-soon could rise by as much as 20 percent. The most prominent new hotel prospect is a 300- to 500-room four-star property, which would be located next to the Frank Lloyd Wright-designed Monona Terrace Community and Convention Center, set to debut next July (See box below). Hilton, Hyatt and Marriott are contenders for the hotel operator's role.

"For a long time, hotels relied on the government, university and private sector for business that invariably flowed their way," Archer said. "Now, however, they've gotten much more aggressive, and we expect to see occupancies rising beyond the present mid-'60s percentile."

In terms of meetings business, the CVB is helping with programs such as one that matches prominent University personnel and the associations in their fields, Archer said. The goal is to see how often those associations hold functions in Madison, and to encourage those that hadn't been to Madison before to try it. The potential "is phenomenal, and should be a real source of future meeting traffic for the city," she said.

The University draws about 100,000 meeting attendees to on-campus functions each year. Off campus, the Dane County Exposition Center offers 100,000 square feet of unobstructed display area, divisible into four separate units.

Madison's business strength is exemplified by having the nation's lowest unemployment rate-1.66 percent in mid-September, according to Bob Brennan, president of the Greater Madison Chamber of Commerce. While that's great news for the 380,000 metropolitan and 200,000 permanent residents, "sometimes it can be difficult for companies seeking skilled workers," he noted.

In what he calls "the 'Silicon Valley of the Midwest,' " Brennan predicts that visitation numbers should continue upward, and not just for academic reasons. For years, the city has hosted the World Dairy Expo, which annually draws representatives from all over the United States and more than six dozen countries to the Exposition Grounds. Following this month's event, Madision will host the World Beef Expo. "That kind of exposition, plus an enlarged airport that will soon welcome more carriers, should all mean more business for our present hotels and good prospects for those yet to be built," Brennan said.

Major air carriers now serving Madison include American, Delta, Midwest, Northwest, TWA and United.