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The Scottsdale/Paradise Valley Tourism Study Part I: Lodging Statistics

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The Scottsdale/Paradise Valley Tourism Study Part I: Lodging Statistics The Scottsdale/Paradise Valley Tourism Study Part I: Lodging Statistics February 2007 City of Scottsdale Economic Vitality Department February 2007 Lodging Report Part I: Lodging Statistics February 2007 Scottsdale City Council Mary Manross Mayor Betty Drake Robert Littlefield Wayne Ecton Ron McCullagh W.J. “Jim” Lane Tony Nelssen Janet M. Dolan City Manager An annual publication of: The City of Scottsdale Economic Vitality Department 7447 E. Indian School Road, Suite 200 Scottsdale, AZ 85251 (480) 312-7989 (480) 312-2672 http://www.ci.scottsdale.az.us/economics/default.asp [email protected] February 2007 Lodging Report 2 Table of Contents Study Overview 5 Study Introduction & Limitations 6 Executive Summary 7 The Scottsdale/Paradise Valley Market Area 8 Trends in Tax Collection 12 Trends in Room Inventory 15 Average Room Rates and Occupancy 20 Room Revenues Vs. Total Hotel Revenues 22 Market Area Golf, Spas and Destination Events 24 February 2007 Lodging Report 3 Index Map 1 (Market Area Map) 9 Table 1 (List of Market Area Hotels) 10 Table 2 (Monthly Bed Tax Receipts) 13 Table 3 (Monthly Sales Tax Receipts) 14 Table 4 (Market Area Hotel Inventory) 15 Table 5 (Scottsdale Room Inventory by Category) 15 Table 6 (Property Inventory) 17 Chart 1 (Hotel Occupancy and Average Rate) 20 Table 7 (Hotel Occupancy and Average Rate) 21 Table 8 (Room Revenue as a Percent of Hotel Revenue) 23 Table 9 (Hotel Revenue Streams) 23 Table 10 (Market Area Golf Courses) 25 Map 2 (Market Area Golf Courses) 27 Table 11 (Market Area Destination Spas) 28 Table 12 (Selected Scottsdale Events) 29 February 2007 Lodging Report 4 STUDY OVERVIEW Part I: Lodging Statistics Part II: Visitor Statistics Part I of The Scottsdale/Paradise Valley Part II of the Tourism Study deals with Tourism Study analyzes trends relating trends relating to tourists themselves. It to the lodging industry in the examines the total number of tourists, Scottsdale/Paradise Valley tourist market their spending patterns and socio- area. The study looks specifically at demographic profiles, and the overall trends in local transient occupancy tax economic impact of the tourism industry (bed tax) collection, room inventory, in the study area. The Visitor Statistics average room rates, occupancy rates, study is designed to provide data that and other factors relating to lodging gives a profile of the type of tourist that trends. The Lodging Statistics study is comes to the area, and to evaluate the designed to provide necessary data economic impact tourism has on the relating to the lodging industry for community. developers, local hoteliers, tourism marketing representatives, financing The Scottsdale/Paradise Valley Tourism agencies, and others with an interest in Study, Part II: Visitor Statistics report is hospitality industry trends. prepared once a year, and is available at no charge from the City of Scottsdale The Scottsdale/Paradise Valley Tourism Economic Vitality Department, or at Study, Part I: Lodging Statistics report is http://www.ci.scottsdale.az.us/economics prepared annually and is available at no /default.asp. charge from the City of Scottsdale Economic Vitality Department, or at http://www.ci.scottsdale.az.us/economics /default.asp. The Economic Vitality Department welcomes your input and suggestions for changes and additions in future issues of this publication, and is pleased to grant permission to use excerpts from this material when credit is given to the City of Scottsdale. February 2007 Lodging Report 5 THE SCOTTSDALE/PARADISE VALLEY TOURISM STUDY: INTRODUCTION & LIMITATIONS Introduction Study Limitations The economy of the Scottsdale/ Much of the information contained in the Paradise Valley area is integrally linked Lodging Statistics study is based on tax to the tourism market. Yet, until the collection figures, and will therefore early 1990’s, limited information existed have certain limitations. Bed tax on the impact of tourism on our collection figures are used because economy. The lack of information made they are consistently tracked and it difficult to predict the impacts of new readily available; however, it is developments, track changes in the important to remember these three market, or understand the best way to points: promote the market. ◊ The tax receipt figures shown for The purpose of The each month actually reflect sales tax Scottsdale/Paradise Valley Tourism and bed tax collections during the Study: Parts I and II is to provide market previous month. There is a lag of information for the tourism, retail, and one month between sales and hospitality operations within the study receipts. area; and provides information to elected officials, city management, the general public, and private sector ◊ The data in this report (with the entities regarding the tourism and exception of room stock figures) is hospitality markets. based primarily on properties located within the City of Scottsdale. The City of Scottsdale Economic Vitality Department compiled this report in ◊ With the exception of room stock cooperation with the Scottsdale data, no information is available for Convention and Visitors Bureau. properties that lie just outside the corporate limits of the City of Scottsdale and the Town of Paradise Valley. It can be assumed the data for these properties would The economy of the Scottsdale/ Paradise Valley area is integrally be very similar to like properties in linked to the tourism market. the market area. February 2007 Lodging Report 6 EXECUTIVE SUMMARY ◊ Scottsdale’s bed tax revenues ◊ Annual occupancy for the totaled $9,374,193 in 2006, up 13.3 Scottsdale/Paradise Valley market percent from 2005. area in 2006 was 69.9 percent, down slightly from 70.4 percent in 2005. ◊ The market area has absorbed nearly 5,000 rooms since 1997. ◊ The percentage of room revenue to total hotel revenues in 2006 was 61 ◊ In the past 10 years, the bed tax has percent. generated almost $74 million in revenue for the City of Scottsdale. ◊ The average room rate in 2006 was $164.19, increased from the 2005 ◊ Hotel/motel sales tax revenues for average of $145.31 per room. Scottsdale in 2006 rose 14.5 percent from last year, totaling $8,645,390 in collections. February 2007 Lodging Report 7 THE SCOTTSDALE/PARADISE VALLEY MARKET AREA Map 1 (pg. 9) shows the boundaries of Table 1 (pg. 10) lists the hotels in the the Scottsdale/Paradise Valley market Scottsdale/Paradise Valley market area. area, and the locations of market area hotels. The market area contains all of the City of Scottsdale and the Town of Paradise Valley; portions of the cities of Phoenix and Tempe; and parts of the towns of Carefree, Cave Creek, and The Scottsdale/Paradise Valley Fountain Hills. market area has more than 75 resorts and hotels, with over 15,500 rooms. February 2007 Lodging Report 8 Map 1 MARKET AREA City Limits Market Area JOY RANCH Town of Carefree 60 STAGECOACH PASS 3 CAREFREE HWY. DOVE VALLEY LONE MOUNTAIN DIXILETA DYNAMITE 15 JOMAX HAPPY VALLEY PINNACLE PEAK DEER VALLEY 64 BEARDSLEY OUTER LOOP UNION HILLS City of 77 45 31 14 46 Scottsdale BELL/FRANK LLOYD 47 WRIGHT BLVD. 19 63 C. 39 A. P. 48 CANAL 67 1 GREENWAY 12 79 airport 78 THUNDERBIRD 66 CACTUS 74 72 13 8 62 SHEA 6 9 61 32 30 70 69 22 17 DOUBLE TREE 28 Town of Ind ian Ben d 16 Fountain Hills McCORMICK PKWY. Wash Town of 33 44 58 104th ST. ST. 110th 120th ST. 124th ST. 130th ST. 136th ST. INDIAN BEND Paradise Valley 29 LINCOLN 54 41 57 41 35 11 MINNEZONA AVE 53 56 38 75TH McDONALD 55 59 CAMELBACK ROAD INDIAN PLAZA BROWN SADDLEBAG 52 4 L SHOEMAN BUCKBOARD A LN N A 25 C 24 CHAPARRAL R D CIVIC CENTER N O S T E T S O N D R S T MILLER E WELLS FARGO 5 T ST S 6TH BOULEVARD 6 T H A V E AVE CAMELBACK 68th ARIZONA 75 73 AVE 76 5 TH SCOTTSDALE INDIAN SCHOOL WAY S C O T T P L Z B R O W N A V E 27 3RD AVE AVE. CRAFTSMAN CT 49 3RD AVE H 75TH T 5 21 36 34 18 MARSHALL BOULEVARD 37 BUCKBOARD TR INDIAN SCHOOL ROAD THOMAS R E D AVE D E 1ST AVE 1 S T A V E L 40 McK L N I 42 G WAY H ST 26 Scottsdale T MAIN ST M A I N S T 43 50 Civic Center GOLDWATER McDOWELL 1ST ST ROAD 1 S T S T Outer Loop - Pima Freeway 101 BROWN 69 TH 2 2ND ST 2ND ST CENTER 3RD ST ROAD 4TH MARSHALL ST STREET 65 23 BISHOP LN McKELLIPS ST 4TH ST WELLS FARGO 4TH ST 5TH ST ST 68 71 6TH ST 6TH ST BROWN AVE CIVIC OSBORN ROAD AVE WAY OSBORN DR 75TH ANGUS DR SCOTTSDALE ANGUS DR MILLER 68TH 7 WELLS FARGO MONTEREY WAY MONTEREY WAY 10 CHEENY LYNN DR 70TH 69TH PL MARSHALL 20 E A R L L D R EARLL DRIVE 56th ST. 64th ST. SCOTTSDALE HAYDEN PIMA Table 1 Existing Scottsdale/Paradise Valley Market Area Properties (Transient Use Properties With 25 or More Rooms) Key Property Name Address Web Address # of Rooms Scottsdale Properties 1 Best Western Airpark Scottsdale 7515 E. Butherus Dr. Scottsdalebestwestern.com 120 2 Best Western Papago Inn 7017 E. McDowell Rd. BestWestern.com 56 3 The Boulders 34631 N. Tom Darlington Wyndham.com 160 4 Caleo Resort & Spa 4925 N. Scottsdale Rd. Caleoresort.com 204 5 Chaparral Suites 5001 N. Scottsdale Rd. Chaparralsuites.com 311 6 Comfort Inn 7350 E. Gold Dust Ave. Choicehotels.com 123 7 Comfort Suites 3275 N. Drinkwater Blvd. Choicehotels.com 60 8 Country Inn & Suites 10801 N.
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