by JEN BIUNDO
A spate of hotel-building, such as the Hampton Inn shown here under construction in December of 2007, has boosted Buda’s tourism revenue. But some motel owners say the market is glutted. (Photo by Richard Stone)
This weekend, hundreds of dachshunds and their human handlers will roll into town for the 13th annual Buda wiener dog races and country fair. Many will make the short drive from Austin, San Marcos and the surrounding areas. But others will come from farther-flung locations around Texas and even out of state, and rest their head for a night or two in a local hotel or RV park.
Those tourists will be a boon to area motels, restaurants and gas stations, said Buda Tourism Director Alisha Burrow.
“For the most part they are geared up and ready for the wiener dog races,” Burrow said.
The city of Buda will also profit off the tourists. Besides the sales tax collected from shops and restaurants, the city takes a 7 percent tax on motel rooms, which it uses to fund festivals, beautification and other projects to generate future tourism. This year, the city is projected to pull in $179,000 in hotel-motel tax, an increase from last year’s $116,000.
After decades as a one-truck stop town, the last two years have seen three new motels open in the city, increasing the number of rooms from 42 to 218. A fifth motel, the 83-room Mictrotel Inn & Suites, broke ground this week with a targeted opening date of Nov. 1.
Motel owners agree that the wiener dog races will boost occupancy in the upcoming weekend. But many say they’re still struggling to stay full in a hotel market that already is glutted with competition.
“I think currently our market is saturated with hotels, until we’re able to bring in more of these unique outings like the wiener dog races,” said Megan St. Clair, director of sales for the Hampton Inn and Comfort Suites.
The Hampton Inn, which opened in 2008, has 74 rooms, while the Comfort Suites, which opened in December, offers 72 rooms. St. Clair said that both motels are close to full occupancy for the upcoming weekend, with just three rooms open at the Hampton Inn and 10 rooms at the Comfort Suites Friday, and about half that number open on Saturday night, all at the top rate bracket of $119 – $139. With walk-ins, they expect to sell out on Saturday.
On an ordinary weekend, St. Clair said the two motels do “a pretty good business” with leisure groups such as family reunions and weddings. But with a fifth motel preparing to open, St. Clair said the prospect of keeping the hotel filled is somewhat daunting.
“I’m working nearly seven days a week bringing in groups so we can meet our quota,” St. Clair said, adding that she’s been working closely with Burrow to keep leisure groups in her hotels.
“The tourism director is doing a good job, and she’s hit the ground running,” St. Clair said.
Subhash Sheth, manager of the Holiday Inn that opened in October on Main Street just east of IH-35, said the hotel still has some openings for the upcoming weekend, though the festival this weekend is helping to boost occupancy.
“It helps everybody,” Sheth said. “It helps all restaurants, it helps all hotels.”
The 72 rooms at the new Holiday Inn, which also includes a conference center, range from $100 – $135. Though occupancy has been relatively high on the weekends, Sheth worries if the market can support a fifth motel.
“It’s already overbuilt,” Sheth said. “It’s kind of a slow time.”
Harry Patel, owner of America’s Best Value Inn on IH-35 at the south end of town, said the influx of new motels in the last two years has impacted his bottom line.
The Dorsett family opened the motel in 1976, and Patel did extensive renovations and landscaping after he purchased it in 2000. Through last decade, Patel said he’s struggled through 9/11, the recent recession and the motel construction boom in Buda.
About half of the 42 rooms are still open for the upcoming weekend, though Patel hopes that walk-ins will bring him close to full occupancy. His rooms run from $54 – $69, a price that Patel said has been forced down by the new competition.
“It’s too many hotels for occupancy really,” Patel said. “It does hurt our business.”
