THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, March 19, 1995 TAG: 9503170201
SECTION: CHESAPEAKE CLIPPER PAGE: 15 EDITION: FINAL
TYPE: Annual Business Review
Cover Story
SOURCE: BY PATRICIA HUANG, STAFF WRITER
LENGTH: Medium: 76 lines
ALTHOUGH THERE WERE no new additions to Chesapeake's hotel industry last year and hotel sales increased only slightly, there's reason to be excited, said Dilip R. Desai, president of LTD. Management Co.
This year Desai's company, which manages Comfort Suites in Greenbrier, Days Inn on Battlefield Boulevard and the Hampton Inn in Churchland, will be adding one more hotel to their collection. And it's not just any hotel.
``The whole idea of bringing in the Fairfield Inn was because we wanted to introduce the Marriott product to Chesapeake,'' Desai said. ``Marriott is the best in the business.''
Currently under construction next to the Comfort Suites in Greenbrier, the Fairfield Inn is a division of Marriott International, scheduled to open this summer.
The new hotel will bring Chesapeake's lodging industry up to 20 hotels and motels. The last hotels to open in the city were the Hampton Inn on Western Branch Boulevard and Comfort Inn at Bowers Hill. Both opened in 1992.
``There's a great deal of migration in and out of Chesapeake. And there's been a tremendous buildup of hotel space over the past 10 years,'' said John W. Whaley, senior economist and economic services director for the Hampton Roads Planning Commission. ``It's a reflection of the city's very rapid growth.''
But taxes paid to the city by hotels increased by only 1.4 percent in 1994 to $1.37 million. Hotel sales increased to about $15 million, up 7.25 percent from roughly $14 million.
``It was a pretty fair year for the hotel industry. I would not say that it was absolutely prosperous,'' Desai said.
Sometimes new developments don't necessarily mean greater demand.
``Sometimes you need to buy out your competition,'' he said. ``We are looking forward for the future.''
The new Fairfield Inn, which will have 109 guest rooms, will be a big plus to Chesapeake, Desai said.
``It took us quite some time to convince them to (build here),'' he said of Marriott International Inc. ``Marriott is not the kind of hotel to put up hotels in every city, every town, every corner. There are some chains that will put them up on every corner like hamburger joints but Marriott is very choosy, very quality oriented.''
The Fairfield Inn is considered a second-tier economy Marriott chain, said Geary Campbell, a spokesperson with Marriott in Maryland. The Chesapeake location will not have conference rooms or ballrooms. ``It's a room-only concept,'' Campbell said.
In major expansion efforts, Campbell said, Marriott is planning to open 50 more hotels in the country this year. ``We're trying to build our secondary and third-tier hotels in places that are on the way to major locations or markets that are on emerging business bases,'' she said.
As much as Desai's company is presenting the city with the Marriott name, he said, they are also adding Chesapeake in the Marriott family. Perhaps, in the future the company will bring to the city a full service location such as the Marriott in downtown Norfolk, he said.
``We've been with the city for 10 years,'' Desai said. ``We will protect the Marriott name.'' ILLUSTRATION: Charts
Hotel Sales
Source: Chesapeake Revenue Commissioner
Taxes Paid the City by Hotels
Source: Chesapeake Revenue Commissioner, City Real Estate Assessor
For copy of charts, see microfilm
by CNB