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Hotel Economics

Submitted by tscope on August 25, 2007

Category: Business
Words: 2774 | Pages: 12
Views: 990
Popularity Rank: 8,060
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The Hotel

The Hilton Rockville & Executive Meeting Center is located 10 miles northwest of Washington, DC, in the heart of Maryland's Technology corridor. Located on Rockville Pike, amidst major office complexes, retail centers and restaurants, the hotel is adjacent to the Twinbrook Metro Station. The meeting center is a state-of-the-art facility and has been one of the leading conference centers in the area for years. Accommodations include:
• 315 spacious guestrooms and suites (king or double queen size beds).
• IACC – certified Conference Center (International Association of Conference Centers).
• 20,000 square feet of meeting space.
• Business Center
• High speed internet in access in all guest room and meeting rooms (wireless and wired).
• Open lobby and atrium.
• Several onsite dinning options, including Room Service, Fine Dining and Lounge.
• Indoor/Outdoor pool, spa and fitness center.

The Competition

Competition comes from several locations, and includes: The Hyatt Regency Bethesda, Bethesda North Marriott Hotel & Conference Center, Doubletree Hotel Bethesda & Executive Meeting Center, The Sheraton Rockville and The Bolger Center. All of these hotels/conference centers offer similar amenities and accommodations, making it difficult to differentiate based on product alone, service standards and pricing are the keys to gaining a competitive advantage.

Local Market Update

The Hilton Rockville has experienced a complete transformation in 2007, undergoing both a brand change (from Doubletree to Hilton) and renovations ($20M started in 2006) of the entire facility. Hotel performance in 2007 reflects the significant structural and cosmetic upgrades, as occupancy and revenues have declined from prior years. Occupancy has declined from 70% in 2005 to 55% in 2007; likewise revenues have declined from $20M in 2005 to...

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