Hog games, motorcycles help boost third quarter NWA hospitality revenue

Football, craft fairs, art and a growing Northwest Arkansas economy helped to spur a 8.2% jump in hospitality taxes among the region’s four largest cities through the first 10 months of 2014. 

Bentonville Fayetteville, Rogers and Springdale reported $4.805 million in hospitality taxes from January through October 2014. That compared to $4.44 million reported in the same period of 2013. Each of the cities collect a 2% hotel tax, Fayetteville also collects a 2% prepared-food tax, while Bentonville has 1% restaurant and prepared-food tax.

The third quarter results (July through September) for the four cities rose 9.8% fueled in part by an impressive 14.6% gain in Bentonville and a 17.8% rise in Springdale.

“We are very pleased with our tax collections for 2014. The third quarter was strong and our October numbers rose 22%. Our budget was $1.66 million and we hit $1.8 million in calendar 2014,” said Kalene Griffith, director the Bentonville Convention and Visitors Bureau.

Griffith is optimistic 2015 will also produce more gains in tax revenue behind the recently announced Bentonville Film Festival which is expected to draw movie patrons, actors and directors to the city with the first screening set for May 5 to 9.

The Bentonville Film Festival is a partnership between ARC Entertainment and the Geena Davis Institute on Gender Media. Bentonville was chosen as the host city because of its charm and the art connection with Crystal Bridges Museum of American Art, according to ARC officials. This festival will show between 50 and 75 films and though Bentonville does have its own movie theater, several other venues are being secured for the screenings.

Griffith said this brings a new audience to Bentonville and it marries nicely with the visual and culinary art already being celebrated throughout the city with the State of the Art exhibition that has been a huge success this fall and winter. 

“Looking at 2015 we have the opening of the Sheraton Four Points hotel this spring which will be 100 more rooms, and the Amazeum is a much anticipated opening this summer,” she said.

Springdale Mayor Doug Sprouse recently said he could not be happier with the turnaround Springdale saw in 2014 from higher motel tax collections to record sales tax numbers in recent months.

“It’s been a long time coming, but we are definitely heading in the right direction,” Sprouse said.

Part of Springdale’s strategy to keep hotels busy has been to recruit group travelers from civic clubs to sporting leagues. Sprouse said the baseball fields under construction at the new city park are needed to facilitate tournament play that helps bring more visitors to town. He acknowledged that Springdale is somewhat behind some of the other cities in ball field construction, but that is changing. 

Fayetteville grew its hospitality taxes by 6.11% in the third quarter. The Fayetteville Advertising and Promotion Commission notes that September was a strong month with the return of Razorback football and 28 events that took place in the Fayetteville Town Center.

Visit Rogers reported a 7.37% jump in hotel taxes for the third quarter. David Lang, general manager for the Embassy Suites, said the summer was strong with business travel, and the Walmart AMP also helped hotel occupancy on the weekends.

Lang said, more so than out-of-towners, AMP patrons from within the region booked a room at the Embassy for the convenience of parking and enjoying cocktails at the events without the concern for traffic and driving afterwards.

Third Quarter Revenue (July through September)
• Bentonville: $495,213, compared to $431,921
• Fayetteville: $680,121, compared to $640,947 
• Rogers: $191,066 , compared to $177,939
• Springdale: $103,342, compared to $87,737 

STR REPORT
The local hotel sector across Northwest Arkansas through November 2014 reported lower vacancy rates, according to the STR Report from STR Global Limited. Occupancy rates stood at 58.6% for the first 11 months of 2014, up from 52.7% in the same period of 2013. The report was derived from the reports of 74 hotels n the region.

Through the third quarter of 2014 occupancy rates were 62.4%, in July, 58.9% in August and 64.8% in September. Occupancy rates improved in each of those months compared to the prior year.

Revenue generated from this local hotel sector through November totals $134.605 million, up 11.4% from the same period in 2013. The hotels offer a total of 8,235 room nights throughout the year. That is up slightly with the recent opening of the Hilton Garden Hill in Fayetteville. 

Higher occupancy rates also favors higher pricing capacity. The average revenue charged per night in the NWA region rose to $84.05, up from $81.07 compared to 2013. 

The highest room rates were logged in the September with an average nightly rate of $95.82, which was on par with September 2013. Local hotel operators said Bikes, Blues, and Barbecue and Razorback Football always make for strong September sales.

HOSPITALITY REVENUE (January through October)
Bentonville
2014: $1.591 million
2013: $1.426 million
11.5%

Fayetteville
2014: $2.268 million
2013: $2.192 million
3.46%

Rogers
2014: $642,235
2013: $585,830
9.62%

Springdale
2014: $305,611
2013: $236,290
29.33%