Shrek and the cast of “Madagascar” may be computer-generated movie animation characters, but they had a real-life impact in National Harbor, helping Gaylord National Resort & Conference Center end the year on a high note.
Still, the Oxon Hill hotel had an overall weaker year than 2010, its Nashville, Tenn., owner reported this week.
Occupancy in 2011 fell to 68.8 percent from 73.7 percent in 2010, although occupancy rose to 66.9 percent in the fourth quarter from 65.8 percent for the same period in 2010.
The fourth quarter was the only one of 2011 for which Gaylord National reported a year-over-year increase in occupancy and revenues.
Gaylord National, part of the Gaylord Entertainment hotel chain, reported year-over-year increases in the fourth quarter for all its financial metrics. Revenues rose to $65.0 million from $62.7 in the fourth quarter of 2010, with revenue per available room increasing to $133.54 from $119.77.
Company officials attributed the fourth-quarter rally to the introduction of the DreamWorks Experience package in November. The package is part of Gaylord’s collaboration with DreamWorks Animation to offer character-themed breakfasts, themed Christmastime events, poolside activities in the summer and other celebration activities.
DreamWorks activities generated about $7 million in incremental revenue for Gaylord’s hotels across November and December, Gaylord CEO Colin V. Reed said in a conference call with investors Tuesday.
Gaylord penned the DreamWorks deal in April.
“This supports our conviction that this offering can be a differentiating factor in the minds of our leisure guests,” Reed said, adding that the DreamWorks program draws more premium customers.
Gaylord National also made some operation changes to its food and beverage offerings, including converting one of its outlets into additional meeting space and hiring a new leader of its room division. The hotel competes with other restaurant options throughout National Harbor, plus five other hotels.
“Our continued focus on managing costs at Gaylord National enabled us to minimize the bottom-line impact of the $19 million decline that we witnessed in revenue for the year,” Reed said.
Gaylord National reported that its revenues last year fell to $235.1 million from $254.2 million in 2010. Revenue per available room also dropped to $134.52 from $140.69. The average daily rate, however, increased to $195.66 from $191.00.
Regionally, hotels in the Greater Washington, D.C., area, last year experienced only a slight increase in occupancy to 67.4 percent from 67.0 percent in 2010 — the third-smallest increase among the nation’s top 25 markets, according to Smith Travel Research of Hendersonville, Tenn. The average daily rate in the region was $144.76, compared with $143.46 in 2010. Revenue per available room also increased, to $97.60 from $96.16.
The Washington region suffers directly from a decline in government travel, especially when federal employees stayed at a reduced per diem rate from 2010, said Jeff Higley, spokesman for Smith Travel.
While the overall U.S. hotel industry experienced strong growth in 2011, he predicted that would slow down in 2012, with the Washington market following that trend. The regional market will pick up again in 2013, with the presidential inauguration in January, Higley said.
“Given the political stalemate in Washington, we don’t expect the market to miraculously recover overnight,” Reed said. “However, we are encouraged by the hotel’s direction going into 2012.”
“We feel comfortable about how January has played out as it relates to the property,” Gaylord Entertainment President and COO David Kloeppel said during the call.
J. Matthew Neitzey, executive director of the Prince George’s County Conference and Visitors Bureau, said he hopes for a 2 percent to 3 percent increase in the county’s hotel occupancy in 2012. He said occupancy last year was flat in the county at 61.4 percent.
“We’re optimistic we’ll see some growth in Prince George’s,” Neitzey said, referring to the potential clients from the region’s historical celebrations of the War of 1812 bicentennial and the 150th anniversary of the Civil War.
He said the election year also should bring more people and interest to the Washington region.
Slots at Gaylord?
Investors participating in the conference call also questioned Gaylord’s interest in bringing slot machines to Gaylord National, should the legislature and Maryland voters expand licenses to Prince George’s. A bill introduced this week could pave the way for slots at National Harbor or Rosecroft Raceway in Fort Washington. The racetrack’s owner, Penn National Gaming, has vigorously pursued landing slots.
Reed said his company is not commenting on the issue until state and county political leaders determine what is in the best interest of their constituents.
When asked to clarify, Reed said Gaylord is not opposed to the idea of slots, but it was waiting to see what happens in the General Assembly.
lrobbins@gazette.net