Hotels spring up

A year after the return of commercial air service to the county, a long-planned hotel for business travelers has opened at the Charles M. Schulz-Sonoma County airport.

The 90-room Hilton Garden Inn, which opened its doors quietly late last month, is one of several new hotel projects that illustrate the continued strength of the county's tourism industry.

In addition to the Hilton, a 102-room Hampton Inn & Suites opened last fall in Rohnert Park, and another 116-room Hampton Inn under construction in Windsor is expected to be finished in early autumn.

"People have been talking about it for a long time, so it's good news," airport manager Jon Stout said of the new Hilton.

Plans had been in the works for a hotel on the Aviation Boulevard site, next to the Airport Stadium 12 theaters, since the late 1990s.

Developer Lukbir Gill, owner of the B&G Group, shelved the project after United Express suspended air service following the Sept. 11, 2001, terrorist attacks, said Kenneth Knudson, president of Henderson Hospitality Group, a 50 percent partner in the project.

Gill later updated the plans and partnered with Henderson in 2006. Construction faced several challenges, including changes in the building codes since the original plans were drawn up, Knudson said.

But the result is a project that Knudson feels is long overdue and will enjoy strong demand.

"We feel like the airport market has been underserved for a while," he said.

The rooms feature high-speed wireless Internet access, flat-screen televisions and work areas. Other amenities aimed at business travelers include a business center, meeting rooms, workout room, swimming pool and full-service restaurant, replete with a display of prominent Sonoma County wines.

"It's got everything a business traveler is looking for in a hotel," said Knudson, whose Nevada-based company manages five hotels and has a sixth under construction.

Occupancy has been low since the "soft opening" on June 20, largely because people don't yet know it's open, he said. Business travelers often book travel several weeks in advance.

On a recent visit, there seemed to be more staff than guests.

But word is getting out, thanks in part to a massive banner hanging on the east side of the building facing Highway 101, said general manager Judy Judkins.

Many of the guests so far seem to be air travelers visiting businesses located in the surrounding business parks, she said.

"I think it's a great location. I think it's a beautiful building. I think we've got everything going for us," she said. "Now, we've just got to drive traffic."

Rates run between $160 and $280 a night, but could go higher based on demand, Knudson said.

The new hotels reflect the fact that the lodging market remains strong despite the economic slowdown. The county's hotels enjoyed a 68.2 percent occupancy rate in May, the highest in years. The average room rate also increased, to $127 per night.

Those kinds of rates are good for business, and great for local government. Revenue from Sonoma County's transit occupancy tax increased 10 percent in 2007, to $21 million.

The Sonoma County Tourism Bureau spends about 30 percent of its budget wooing business travelers to the county, primarily through an incentive program that reduces the costs of conferences by up to $4,000, said spokesman Tim Zahner.

Weekday business travelers are a key group because they complement the weekend tourism traffic.

"Midweek and offseason, business people are finding that we are a viable meeting destination," Zahner said.

There is also a "halo effect" that occurs when business travelers have positive experiences here and then return later for pleasure, Zahner said.

You can reach Staff Writer Kevin McCallum at 521-5207 or kevin.mccallum@pressdemocrat.com.