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The Hotel Roanoke and Conference Center set financial records during its eighth year of operation despite a weak economy that resulted in a slump in the hospitality and travel industry nationally.
Many companies cancelled or reduced meetings and travel of employees in an effort to reduce expenses, yet Hotel Roanoke fared well by posting record gross revenues, record occupancy rates, and record revenues per available room. The total revenues for the Hotel Roanoke for fiscal year 2003 were $15.6 million, up from $14.5 million in fiscal year 2002.
The net operating income for the fiscal year was $2.18 million, compared to $1.45 million the previous year, with much of the increase coming from settlement of a business interruption insurance claim. Occupancy for 2003 was a record 71.2 percent, up from 67.4 percent in 2002. The average daily rate was $94.44, compared to $94.67 in 2002. 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.
The first lien debt of $4.85 million in bonds was remarketed in June 2003, with the Virginia Tech Real Estate Foundation purchasing the entire bond issuance. The interest rate was established by independent analysis and set at 4.1 percent for five years. The HUD loan, which has a remaining balance of $5 million, was to be refinanced in October 2003 by the City of Roanoke at an anticipated interest rate of approximately 4 percent. The annual debt service payments for the Hotel Roanoke will be reduced by $200,000 based on the restructuring of these two obligations.
Virginia Tech’s colleges, alumni groups, and continuing education programs consistently use 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. During the year, approximately 11,000 room nights were associated with the university group market segment. That was about 13 percent of the total 86,298 room nights at the hotel and 28 percent of the record 39,685 total group market segment room nights.
Hotel Roanoke is well established as a valuable asset for Virginia Tech’s outreach mission, and it enhances the university’s public image among the thousands who visit the hotel each year.