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This fiscal year is one that will not easily be forgotten because of the effects of the weak economy and the events of September 11 on the hospitality and travel industry. Hilton's decision to sell the management contracts for its conference center division, which includes the Hotel Roanoke, also captured a great deal of attention.
The weak economy and the terrorist events of September 11 resulted in a decline of activity at the Hotel Roanoke in September, October, and November compared to previous years. Many companies cancelled or reduced meetings and travel of employees due to the terrorist events and a downturn in the economy. The total revenues for the Hotel Roanoke in fiscal year 2002 were $14.6 million, compared to a projected $15.2 million at the start of the fiscal year. This shortfall in gross revenues was due primarily to the weakened economy and the events of September 11.
Even though gross revenues were below the initial projections, the net income for the fiscal year was $1.5 million, slightly above expectations. The average daily rate was $94.67 compared to $94.57 in FY 2001. These financial achievements are commendable in light of the events of the year and demonstrate the excellent efforts and control of expenses by the hotel's management team.
During FY 2002 Hilton Hotels, parent company of Doubletree Hotels, sold its management contracts at 14 university and conference center properties that were associated with the Harrison Conference Center Division to Aramark Corporation. The Virginia Tech Foundation decided not to transfer the hotel's management contract. The Hotel Roanoke and Conference Center remains a Doubletree Hotels property under the existing management agreement.
Virginia Tech's colleges, alumni groups, and continuing education programs are consistently using the Hotel Roanoke and Conference Center for events. These events bring together members of the university community and alumni, as well as people who had never before experienced the value of the university's educational and outreach resources. In FY 2002, over 11,370 room nights were associated with the University Group Market segment, which represented approximately 14 percent of the total room nights at the Hotel Roanoke. The facility is well established as a valuable asset for Virginia Tech's outreach mission and public image.