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Roger Yu
USA Today
October 16, 2005
Waves of evacuees from Hurricane Katrina have been a financial windfall for hotels near the battered Gulf Coast, but now many business travelers are struggling to find rooms of their own.
More than 80% of hotel rooms in Houston were full in September, up from 58% a year ago, according to exclusive data by Smith Travel Research for USA TODAY. In Memphis, 75.3% of rooms were full, vs. 61% a year ago. Hotels in Atlanta, Dallas, Little Rock and San Antonio were likewise jammed.
In some areas, hotels for miles around are full of survivors. Ira Dale, a sales executive from North Dakota, tried to book a room in Jackson, Miss., on Oct. 3-4 to visit a client. He "found it impossible," he says. His travel agency called Hyatt and Hilton chains, but the only available room was at a Holiday Inn 75 miles away.
Nearly 10,000 hotels nationwide are participating in a federal program administered by the Red Cross to house hurricane evacuees until more permanent housing is found. About 600,000 evacuees have used the program, says Corporate Lodging Consultants, which handles billing for the Red Cross. By Oct. 24, the government will have spent up to $425 million on the program. Most participating hotels are in Louisiana, Mississippi, Alabama, Texas, Florida and Georgia. On average, the Red Cross has paid $59 a night for rooms.
Although the evacuees are a financial boon, owners of some fully booked hotels are now confronted with customers who booked before Katrina wanting their rooms. Earlier this month, some Hampton Inn owners asked evacuees to leave to make room for prebooked guests. Kathy Shepard, a spokeswoman for Hilton, which owns Hampton Inns, says its policy is to honor reservations. Hotel managers were told to move evacuees to other rooms or hotels.
But James Guillory, owner of the 65-room Hampton Inn Ship Channel near Houston, turned away booked business customers last month because his hotel had so many evacuees. Operating costs � for power, water, free breakfasts � jumped 15% to 20% as more people than usual packed each room. The Red Cross paid a corporate rate of $75 to $79 a night compared with non-discounted rates of $89 to $99 a night, he said.
Other chains are also turning customers away. Choice Hotels, which owns Comfort Inns and Econo Lodge, has been calling booked guests to ask them to relocate or reschedule, spokeswoman Robin Ferrier says.
Accor, which owns Motel 6, also has been working to reroute prebooked guests. About 11,000 evacuees are staying in 3,500 hotel rooms it manages across the South, spokeswoman Janice Maragakis says.
