Greeley hotel occupancy making a comeback with oil and gas industry | MyWindsorNow.com

Greeley hotel occupancy making a comeback with oil and gas industry

Katarina Velazquez
kvelazquez@greeleytribune.com

Things are looking up for Greeley's hotels so far this year, thanks to the steady comeback of the oil and gas industry.

The city's hotel occupancy rate and price per room are up compared with numbers from 2016, according to June statistics from the Rocky Mountain Lodging Report. They are exceeding numbers from June 2015, too, according to Robert Benton, who helped put together the lodging report. Benton said the comeback of the oil and gas industry is a large reason why Greeley's hotel market also is making a comeback. Rig counts are about double what they were a year ago.

"Greeley has been one of the stronger performers due to the energy markets, then energy places took a decline," he said. "The hotel industry in Greeley is impacted by oil and gas trends, and the number of new wells is coming back, and activity has increased. That has had an positive impact on Greeley's lodging market."

According to the report, Greeley's June hotel occupancy rate was 88.8 percent, and the average daily rate of a room was $110.32. The report showed Greeley had 16,549 available rooms and 14,700 of them were occupied throughout the month.

“The hotel industry in Greeley is impacted by oil and gas trends, and the number of new wells is coming back, and activity has increased.

— Robert Benton, Rocky Mountain Lodging Report

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Greeley's rate is the second highest in the state behind Denver, and Benton said occupancy rates are typically higher in the summer because of the added tourism. The Greeley Stampede also is a huge economic driver that occurs in Greeley in June, which likely helped drive that number up, as well.

But outside of summer, Greeley's rate has steadily risen since January of this year. The city boasts the highest year-to-date occupancy rate in the state at 74.2 percent, up from 64.2 percent in 2016. Benton said that's a significant increase in percentage points and is well above the state's year-to-date average of 68.4 percent.

Greeley also is the only city along the Front Range that saw an increase in percentage points regarding its market from 2016 to this year, as Loveland and Fort Collins remained stagnant year-over-year. Loveland's dropped 1.2 percentage points and Fort Collins only rose 0.3 of a percentage point.

The booming oil and gas industry in 2013 and 2014 pushed the demand for rooms way up, and Greeley's occupancy rate rose as high as 90 percent in 2013, as energy workers needed a place to stay. That number took a dive after prices dropped and oil and gas activities slowed down, but the market is picking up again, ultimately benefiting Greeley's hotels.

"I think you have to point to oil and gas or energy activity (in Greeley)," Benton said. "That's been a significant driver of occupancy."

Hotel occupancy rates

Greeley’s year-to-date hotel occupancy rate for 2017 is the highest in the state, thanks to the gradual comeback in the oil and gas industry. Here’s how it compares to a few other areas in the state:

Occupancy rate / Average daily rate

» Greeley: 74.2 percent / $100.37

» Denver: 74.1 percent / $140.01

» Loveland: 71.1 percent / $119.72

» Colorado Springs: 67.5 percent / $110.33

» Grand Junction: 65.6 percent / $84.63

» Fort Collins: 64.7 percent / $111.50

» Mountain resorts: 57.3 percent / $319.05

Source: Rocky Mountain Lodging Report