For L.A. hotels, 2009 Hollywood awards shows raise spirits and business in a challenging year.
Every year, Hollywood throws a huge party. It's a self-indulgence that kicks off in January with a series of well-publicized pats on the back in the form of the Grammys, the Golden Globes, guild awards, and, to top it all off, the Oscars. But this year, especially, such dazzlements weren't just about glam and glitter; they were crucially needed business to prop up a softer time for Los Angeles meetings and hotels.
"January and February are not usually our best months of the year," acknowledged Michael Krouse, senior VP of sales and client services for LA Inc., the city's convention and tourism bureau. "Since it is a calmer time for us, I think it's why the awards ceremonies are held then."
But, in early 2008, the party couldn't get started. The Writers Guild of America (WGA) strike lingered long enough to dampen awards season and render the Golden Globes moot. That was when it became clear: Without Tinseltown's lovefests, January and February would be even softer than they normally are.
The strike did not do LA hotels any favor, since it has been determined that the economic recession began in December 2007. January 2008 occupancy at city hotels was 67.8 percent (versus 68.8% in 2007) and February 2008 was 74.5 percent (versus 77.4% in 2007).
As a result, 2009 awards season was a rebound one for the hotels, in an already precarious year. This year, LA properties—like all else—are being challenged by the struggling economy.
Awards-related meeting and event buyers were cautious when it came to setting up events at the local big-name hotels. The companies that had nominees reduced their amount of rooms or their number of room blocks, according to Jorge Collazo, director of marketing for the Four Seasons Los Angeles, "but not by a massive amount."
With 9,650 sf of meeting space, the Four Seasons isn't geared to host big awards show broadcasts, but it gets plenty of business from private luncheons held for nominees and smaller private functions hosted by companies with nominees in the hotel. The Four Seasons is also the home of several "swag suites"—meeting rooms set up with goody bags of merchandise given away to invited nominees and guests.
"They will always have priority for us," said Collazo, of awards-related functions. "There is a certain level of prestige at having [the entertainment industry] here."
At the Hyatt Regency Century Plaza, general manager David Horowitz explained that most awards shows don't book the property's guest rooms, but they capitalize on the hotel's 25,000-sf ballroom (part of the property's 100,000 sf of meeting space). The Hyatt Regency's ballroom has seen the Directors Guild of America Awards, the WGAAwards, and the BAFTAAwards, to name a few.
"The early part of last year, there was a definite pall in the entertainment [industry] because of the strike," said Horowitz. "But there's no question that there was better energy this year. While each awards show may go down a little bit in numbers, the aggregate numbers are going to be better this year in comparison to 2008."
Next year beckons change in LA's hotel dynamic, when the Grammys begin ramping up again. LAInc.'s Krouse estimates the 842-room JW Marriott and the 123-room Ritz Carlton at L.A. Live will be open, providing five-star hospitality closer to the ceremony, which is held at the Staples Center. The properties are expected to attract those who've used the Beverly Hilton and the Hotel Bel-Air.
Meanwhile, Tinseltown hotels will do whatever they can to retain that entertainment industry spotlight because the glamour rubs off on others that are on site. Noted Horowitz: "It's fun to get the stars to come through the hotels. It creates a buzz. When you have a customer here who's waiting for a car and all of a sudden sees one or two stars passing by, well, that makes the stay."
Originally published April 20, 2009