Newport has succeeded in branding itself in the national tourism market, according to local and national tourism associations. Above, a storefront on Thames Street.
The occupancy rates of hotel rooms slightly dipped in Newport and Middletown last year, yet hotel expansions and new construction pushes along in the Aquidneck Island communities.
The slight decrease, which was about 1.6 percent, came at a time when room rates increased by an average of $7 in Newport and $4 in Middletown, said Evan Smith, president of the Newport County Convention and Visitors Bureau.
Multimillion-dollar renovations have been completed recently at two of Newport’s flagship hotels – the Best Western Mainstay Inn and the Newport Marriott. The city’s Holiday Inn Express was also recently approved for an expansion that would add 46 rooms.
Newport Grand is also looking to add an 86-room hotel. The owners of the gambling facility recently received approval from the state for the project, but Smith said they are seeking a developer for the project.
With the lower occupancy rates, what is pushing the need for more hotels?
Smith said analysts are still anticipating growth over the next five years, and hoteliers are optimistic about the region.
“Most industry analysts are predicting 4- to 7-percent growth per year in the lodging market,” Smith said. “Also, [owners and developers] make their decisions based on the history of their projects and their feelings of their demand.”
If Rocky Kempenaar gets all the necessary approvals for his proposed Residence Inn by Marriott project in Middletown, it will be his third on Aquidneck Island.
Already the owner of the Hampton Inn & Suites in Newport and a Howard Johnson Inn in Middletown, Kempenaar and partner James Karam have proposed to tear down 40 rooms at the Howard Johnson to build the 97-room Residence Inn, netting the community 57 rooms.
If built, the Residence Inn would be an extended-stay facility, with rooms similar to small apartments and more amenities available to travelers than they would receive in a normal hotel.
The move, Kempenaar said, should help him attract more people to his properties and level out his occupancy rates. The Hampton Inn has remained steady at a 70-percent occupancy rate. However, there have been dips at the Howard Johnson. By eliminating 40 rooms, the occupancy rate should jump to 70 percent at that facility.
Despite his decision to embark on another project, Kempenaar said he feels the market is basically at its full potential, in the absence of any new business coming to the island.
“The market is pretty much at its peak unless they put in some type of convention center,” Kempenaar said, adding that new hotels could end up replacing some of the older ones.
Asked whether Aquidneck Island is becoming saturated with hotels, Smith said he believes the market “will bear them.”
But according to Rhode Island Tourism Director David DePetrillo, Newport tourism remains one of the driving forces in the state’s hospitality industry. Much of that, he said, can be attributed to the foresight of people looking to make the city a destination in the long run.
“Newport, as it was gaining more attention as a travelers’ destination, was able to focus on upgrading its infrastructure,” DePetrillo said. “I think people had more confidence that it was going to attract more visitors.”
Smith said the visitors bureau has worked to strengthen the region’s marketability by branding it as a community that offers a variety of activities. Whether it’s architecture, sailing or culture, Smith said Newport’s attractions have all made improvements in an effort to keep tourism as a key part of the island’s economy.
“Newport has a diverse brand,” Smith said. “It’s not narrow; it’s very broad and varied.”
Michael Gherisch, president of the travel industry group Destination Marketing Association International, said at a visitors bureau meeting last month that Newport has succeeded in branding itself, while other communities have wrestled with the concept.
“It’s considered an attractive location,” he said. “It has beautiful topography and heritage” as well as many activities for visitors.
