Below is an excerpt from an article by Paul Post on hotel expansions and over abundance of rooms.
By Paul Post, The Saratogian
Posted: 03/30/16, 4:07 PM EDT | Updated: 1 day ago
New hotels outpace demand: Room rate down in first quarter
First quarter hotel room occupancy is down 12 percent in the greater Saratoga area, officials said Wednesday.
The downturn is blamed on fewer business guests from GlobalFoundries and General Electric Co., a mild winter that deterred skiers, and more new hotel rooms that affects the overall occupancy rate.
Room occupancy was 48 percent this winter compared to a first-quarter record 60 percent last year, said Cindy Hollowood, Holiday Inn general manager.
“As a region we are struggling with too many hotel rooms,” she said.
Two new facilities – one each in Clifton Park and at Exit 12 in Malta – are scheduled to open this year. Also, work is nearing completion on a new hotel at Saratoga Casino & Raceway and a large six-story Courtyard Marriott in Lake George.
In addition, another two hotels are proposed for Malta, the Adelphi Hotel in downtown Saratoga Springs is expected to reopen next year, and plans call for a new hotel at the former Weathervane Restaurant site on Route 9.
Likewise, plans are in the works for three new lodging establishments at Exit 18 in Queensbury, and a large new casino hotel in Schenectady.
Saratoga County alone is expected to have 750 more rooms by the end of 2017, said Todd Shimkus, Saratoga County Chamber of Commerce president.
The industry’s goal is to sell out every night. So the area’s hospitality and tourism trade would have to generate an additional 273,750 room sales per year to meet this benchmark, he said.
“The supply is going up,” Shimkus said. “We’ve got to make sure demand goes with it. Last year, a very good year, demand rose 9 percent, but supply increased 13 percent at the same time.”