Energy industry drives surge in Grand Junction lodging.

• Author: Kretschman, Bob
• Position: [ENERGY]

Most evenings, parking spots at Grand Junction hotels are filled with trucks bearing energy-company logos.

A substantial number of lodging customers in Grand Junction work in the Western Slope energy industry, and hotel operators say the additional business has consumed most of the extra rooms in the hotel market. Room rates are rising, and new hotels are opening in response to the additional demand.

"The energy business has taken up a lot of the excess capacity in the market," said Steve Reimer, who co-owns two downtown Grand Junction hotels with his brother, Kevin. The Reimers are proposing a new downtown hotel to take advantage of the growing demand.

Through the first five months of 2008, Grand Junction's lodging tax receipts are up 22 percent from the same time one year earlier. Lodging tax collections have grown by doubledigit percentages annually since 2005, culminating in a 23.6 percent increase in 2007.

Lynne Sorlye, general manager of the Holiday Inn in Grand Junction, credited energy-related business traffic for much of the increase.

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"A lot of people don't realize the scope of the energy industry," Sorlye said. "There's a ripple effect."

Energy-related guests include the employees of large, well-known companies, as well as workers and sales representatives for smaller firms that supply niche products or services to the energy industry, such as safety training or highly specialized equipment, she said.

Sorlye said that last winter, about 70 percent of her 291-room hotel's guests were business-related travelers. No reliable data exists on the mix of business and leisure visitors on a citywide basis.

The strong demand for hotel rooms in Grand Junction has pushed lodging rates higher. According to the Rocky Mountain Lodging Report, Grand Junction's average room rate increased to $83.34 in April 2008 from $77.01 in May 2007.

"That's good in general. Our hoteliers are making a little more money, and we're selling out on nights we didn't expect to be selling out," said Jennifer...