Employment Growth Continues in Hotel Sector

While the hotel industry hasn’t exactly been immune to economic ails, many job seekers still see the industry as a glimmer of hope in an otherwise bleak employment market.

David McGeady, general manager for the Clarion Hotel and Sleep Inn in Bentonville, said applicants come through the door every day, even though he hasn’t advertised any positions.

On average he gets about 10 applications per day.

And chances are those applications won’t be ignored.  

According to the U.S. Bureau of Labor Statistics, employment in the hotel industry is expected to grow faster than any other industry.

Wage and salary employment in hotels and other accommodations is expected to increase by 14 percent between 2006 and 2016, compared with 11 percent for all industries combined.

In Arkansas, the leisure and hospitality industry added 1,100 jobs from May 2009 to June 2009.

Between 2004 and 2008, hotel employment in the Fayetteville-Springdale-Rogers MSA grew by 27 percent, according to statistics from the BLS.

McGeady said the hospitality industry will be quick to rebound from the current recession.

The industry experienced similar reductions in occupancy rates after 9/11, he said, when travel and tourism all but halted.  

But the occupancy levels came back up and the industry continued to grow, McGeady said,

“We made it through 9/11 and we’ll make it through this,” he said. “With new hotels opening and hotels being renovated, the industry is going to continue to grow and prosper in Northwest Arkansas.”

Two new hotels opened in 2009, including the 96-room Homewood Suites by Hilton in Fayetteville, which opened May 22.

General Manager Nathan Bramlett said he started interviewing for positions at the hotel in April.

Bramlett said he expected to build a team of experienced hotel workers but applicants were mostly from other industries.

“A lot of different folks are looking to get into the hotel business,” he said. “Either they’ve lost their jobs or if they were self-employed, they want a steady paycheck.”

Hotels also attract people looking for a second job, Bramlett said. The nature of the business allows them to work at night and on the weekends.

That flexibility makes the hotel industry an attractive place to work, particularly when times are tough, he said.

Bramlett, who previously managed the Comfort Suites in Bentonville, said the application pool for Homewood Suites was about 25 percent larger than what he’s typically seen for a new hotel.

After running one help wanted ad, he received about 200 applications.

“A lot of people perceive the industry as one that is always going to be here,” Bramlett said.

The industry may be soldiering through the economic downturn, but not without its share of setbacks.

McGeady said sales at the Clarion and Sleep Inn are about 20 percent off 2008 and room rates are down as demand has declined.

Tom Reed, a partner with Street Smart Data Services in Fayetteville, said occupancy rates have been steadily declining at hotels in Northwest Arkansas as companies cut back on travel expenses.

“The hotels in the region cater significantly to the business traveler Monday through Thursday,” he said. “Companies have changed the way they are looking at travel, which obviously impacts the market.”

But McGeady predicts the market will turn around, with room rates going back to their pre-recession levels within 12 to 18 months.

The opening of the Crystal Bridges Museum of American Art in Bentonville will have a big impact, he said.

McGeady also anticipates Wal-Mart vendors will continue to bring travelers to the area as the economy improves.

“The industry is not going away,” he said.