The Park City area’s lodging occupancy in March and April was down nearly 25% year over year.
Park City Chamber and Visitors Bureau senior director of partner services Scott House said in April, both lodging demand and the average daily rate, or ADR, declined across Park City properties compared to the previous year.
“We saw, in April, occupancy was down 24% year over year,” House said on KPCW’s “Local News Hour” May 27. “We knew the snow wasn't there. Resorts closed early, and so that was a challenge. As we look at the last six months in the rear view, certainly April was a tough month, but overall, down 13% which, when you consider the [entire] winter, isn't too bad, and room rates held remarkably well. So that average daily rate just down 1.7% at $880 through the past six months, which really speaks to kind of the resiliency in that lodging market.”
Looking ahead, House said the forecast for the next six months is more encouraging. Projected occupancy is down less than 4% while the average daily hotel room rate is expected to increase about 1.5%
One bright side, he said, is the continued strength of the group meetings market. Group bookings help smooth out visitation peaks and valleys, particularly during the shoulder seasons.
“Right now, lots of interest in that group travel,” he said. “Our group sales team is doing lots of work in filling kind of those shoulder season rooms, so from May all the way through October, November, they're willing to help to kind of plug that gap right now, and it's looking positive, so hopefully we see that 3.4% erased, and we go positive.”
House said the local sales taxes tied to lodging and tourism are also providing some encouraging signs as the community heads into summer.
“Local sales tax, it’s up 10% for the month [of February] and up 5% year to date. So, when we're talking year to date, that's January to April,” he said. “Restaurant and lodging taxes are kind of linked, and they reflect that softer winter. So, restaurant tax was down about 6% for the month, but down just point 7% year to date, so nearly flat. TRT [Transient Room Tax] was down about 7% for the month [of February], but again only down 3% year to date. Recreation Arts and Parks is essentially flat, but trending positive, down just 4% but up 2% for the year.”
The Park City Chamber and Visitors Bureau is primarily funded with transient room taxes and House said the organization has already planned for the budget impacts of lower lodging revenues.
