NIAGARA FALLS, CANADA HOTEL BUSINESS. has learned that Bass Hotels & Resorts Crowne Plaza brand has recently entered into a license agreement with a local developer to build a 250-room hotel here.
Meanwhile, Hyatt Hotels broke ground here this month on the Hyatt Hotel & Casino a 350-room hotel featuring an 110,000-square-foot casino, and another developer reportedly will begin construction on a 240-room yet-to-be-flagged hotel.
According to Jon Lantz, managing director of HVS International s Toronto branch, after the Canadian government built a 130,000-square-foot casino here in 1996, a 280-room Marriott, 560-room Hilton, 250-room Courtyard by Marriott and two Sheratons have been added to the area s hotel supply. With a second casino venue already in the pipeline, additional flags are seeking to establish a presence in this increasingly lucrative market, he said.
Traditionally, the Niagara Falls hotel market was populated by independently owned and operated motels. 1996 marked a year of change for the area, according to Lantz, because the debut of the government-funded casino helped attract an additional 14 million visitors per year. With a second casino venue in the pipeline, the area is expecting its tourist influx to again increase dramatically.
“The second casino will test how deep the market is. Initially, the plans were to shut down the first casino when the second one opens, but because of the popularity of the first one, it is believed that both will thrive, said Lantz.
Financing from the Canadian government also backs Hyatt s new casino/hotel, slated to debut in 2004. The government put out an RFP and awarded the contract to Hyatt, which will operate the new property.
“Niagara Falls is now a market that has representation by just about every major hotel brand, said Lantz. This means the market offers hotels of a quality that was never there before and it means that a different type of clientele are visiting the area because of the brand offerings that are available. (5/31/01) Kelly Wayne