Wednesday, May 29, 2019

Wisconsin Dells Convention Hosting Stage II - Over Supply Hotel Rooms

The Village of Lake Delton has given the Kalahari Resort 10 million publicly collected dollars to build a convention center (212 thousand square feet) capable of serving large regional - national groups.  This is expected to attract a huge new population of shared customers in to the Wisconsin Dells area.  The community is hoping the new convention center can become operational within the 4th quarter of 2019.

To be prepared to better serve this huge new population that will attend conventions at the Kalahari Resort the Village of Lake Delton is providing financial incentives for franchise hotel operators who locate in the Wisconsin Dells area.   The Village of Lake Delton has given the franchise hotel operator of the La Quinta Del Sol 1.8 million dollars - ground is being cleared on the Wisconsin Dells Parkway.

The Wisconsin Dells area now has an over supply of hotel rooms.  This signals a buyers market - meaning hotel room prices are falling because their is an over supply of hotel rooms in the Wisconsin Dells area.  The over supply of hotel rooms is expected to engage local hotel operators who will influence the Kalahari Resorts new 212 thousand square foot convention center to function at a higher occupancy level.

Engaging hotel operators means local influence will push the new convention center to serve groups with higher numbers to create a spill over.  Spill over is when the group attending the new convention center is so large the Kalahari must arrange for the rental of blocks of rooms from the surrounding hotel operations.

When the Kalahari Resorts new convention center becomes operational expect local hotel business modals to track the level of occupancy in the convention center.   This ongoing tracking will indicate the type of interventions that may be necessary to move the convention center toward renting space to groups with higher numbers. The Wisconsin Dells area has entered stage II of the convention hosting industry.

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