Berkeley Hotels Prosper Despite National Economic Troubles
Wednesday, September 24, 2008
Category: News > City > Business
Despite the woes on Wall Street and the economic downturn across the country, the hotel industry in Berkeley is prospering and many owners are taking the time to make their businesses green.
Many of the city's hotels, from small boutique inns to corporate chains, are going through multimillion-dollar renovations and implementing environmentally friendly practices to accommodate the demand from Berkeley's consistent stream of visitors.
The economic slump has raised concerns for restaurants and retail businesses like hotels that rely on disposable income-the money people have available to spend after paying for bills and other necessities.
"Businesses that rely on disposable income are going to be most affected (by the slumping economy)," said Ted Garrett, CEO of the city's Chamber of Commerce.
But according to Barbara Hillman, president of the city's Convention and Visitors Bureau, hotels in Berkeley are at 80 to 85 percent capacity and are not especially affected by the economic situation.
"For the quality of the university and what it brings in, we don't have adequate lodging," she said.
Hillman said football games, conventions and other events on campus attract visitors regularly.
Because the economy is not doing well, hotels are improving facilities to attract as many of these visitors as possible.
"A lot of investment is done countercyclically, anticipating future trends," said Michael Caplan, the city's economic development manager.
Hotel Shattuck Plaza is undergoing a $25 million renovation and Hotel Durant's revamp is priced at $10 million.
While large chain hotels like the ones in nearby Emeryville might help with Berkeley's shortage of rooms and meeting space, the city does not have enough space for chain hotels, Hillman said.
Furthermore, the city has been hesitant to bring in such chains because it usually favors independent businesses, Hillman said.
"People are very vocal about what they want coming into the community," she said. "Berkeley has a very European atmosphere ... and it doesn't want to compete with Emeryville as a shopping mecca."
According to Pamela Evans, coordinator for the Alameda County Green Business Program, Berkeley has both the most green-certified businesses in the county and the most backlogging for new applicants seeking certification.
Many of the city's hotels are also turning to green certification.
"It would be a blatant disrespect to the people of Berkeley if we don't do everything (to make our business environmentally friendly)," said James Lim, general manager of Hotel Durant.
Lim said he is using the renovation as an opportunity to replace old toilets with water-efficient ones and introduce biodegradable cleaning products, among other green innovations.
"When you are doing a renovation, you are going to bring everything up to building codes so it is a perfect time to work with the Green Business Program," said Ceil Scandone, regional coordinator for the program.
Daryl Ross, owner of the Bancroft Hotel, which is currently applying for green certification, said that environmentalism is part of his philosophy for running a business.
Among the green products in his hotel are compact fluorescent lighting, cork flooring, organic mattresses and a biodiesel delivery van.
"(Caring for the environment) is so much more pronounced when it is a business," he said. "It is like 20 families recycling."
Asaf Shalev covers local business. Contact him at ashalev@dailycal.org.
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