Hotel room-rate war over in Reno

Monday, June 30, 1997 | 4:18 a.m.

Average room rates increased a whopping 17.9 percent in May over the same month a year ago, the third straight month that rates have risen, according to figures released by the Reno-Sparks Convention & Visitors Authority.

Hotel rates increased by $6.28 to $49.92 and motel rates jumped by $6.26 to $43.65.

"I've never seen a $6 room-rate increase and I've been doing this over 15 years," RSCVA Finance Director Ed Beaver told the Reno Gazette-Journal.

Tourism officials attributed the rate turnaround in part to increased demand spurred by the Women's International Bowling Congress tournament at Reno's National Bowling Stadium.

Room rates started heading back up when the tournament began March 1.

"I think definitely the bowlers are part of it," said Stephen Ascuaga, an RSCVA board member and executive vice president of marketing for the Sparks Nugget.

"I wish we saw this kind of gain every month. I think, more than anything, it (rate) might be falling more in line with where it should be."

The women's tournament ends in mid-July, and Ascuaga said he hopes the properties can maintain the rates until the start of a major men's bowling tournament in early 1998.

"It's real easy to cut the room rate, but to build it back up is a slow process," he said.

The hotel occupancy rate in May was 80.8 percent, down 3 percent from the same month a year ago. The motel occupancy rate was 51.1 percent, up 11.1 percent.

Room nights, one room occupied one night, were a combined 461,753, up 7.3 percent from May 1996.

RSCVA posted a record for the month of May with gross room-tax collections of more than $2 million. The tourism agency uses the funds to market the Reno area.