In one phone call, an oil industry official offered to book all 75 rooms of the Ramada Inn in McComb for six straight months to provide lodging for its workers.
Requests like this are coming with increased frequency over the last three months and correspond with an increase in Tuscaloosa Marine Shale play activity, according to local hotel managers.
“I’ve been working here for 14 years. It’s easy for me to say we’ve never seen business like this. There has been a significant increase in business here and at other hotels,” said Ramada Inn General Manager Karen Stockman who passed on the offer to completely book the place.
The added business not only benefits the bottom line of the hotel industry in town, it also funnels dollars to the city in the form of McComb’s 3 percent motel tax.
So far, money from the tax has been allocated for completing work at the McComb Sports Park.
Where future revenue will go has yet to be determined by the board of selectmen, but that will be considered at an upcoming city board meeting, McComb City Administrator Qurdiniah Lockley said.
The increased hotel business has played out in phases, said Holiday Inn Express front desk manager Rachel Tate.
“First, the lawyers came in,” she said. “They would book rooms every week — 10 to 15 rooms at a time. Then, after the lawyers, we saw more of the corporate people come in, or the upper levels of management and administration.
“Then, we didn’t see much activity for about a year or so. It’s only been recently that we’ve started to see the field workers here. But we are definitely seeing a greater volume of workers.”
Business has been so good at area hotels that in some cases room availability cannot keep up with the demand for lodging. This happened with Slumber J Oil personnel, who originally stayed at the Holiday Inn Express, but moved to the Ramada when they learned their work would be extended. At the time, the Holiday Inn did not have the capacity to accommodate the workers.
“We are always busy this time of year with weddings, and school and family reunions. With the extra need for rooms, the hotel fills up fast,” Tate said.
Stockman has dealt with the same issue at the Ramada Inn.
“Sometimes we are a little tight with our bookings, but I do my best to prevent this from happening. I pay close attention to who’s coming and going,” she said.
Revenue collected by the city of McComb reflects Tate and Stockman’s experience.
Despite a few fluctuations in 2012 and 2013, hotel tax collections have remained steady. A significant increase occurs in the last three months, confirming what hotel managers have seen. Hotel tax revenue in May jumped to $29,618.57, marking an increase of $6,947.95 over the previous month. May’s total was also a $6,939.97 increase from the year before.
Following the trend, June showed a $7,435.71 increase in revenue from the year before. The numbers for July show a similar increase, despite being released days before the end of the month. The city collected $21,765.83 in July 2013. With two days remaining in the month, the city has already collected $8,245.78 more in revenue than last year.
The increased need for hotels in the area has led to speculation on the construction of at least one new hotel in town, if not two.
Director of Inspection and Zoning for the city, Walter Temple said he has heard the rumors himself but nothing has been confirmed and no plans have been filed with his office.
Some of the companies that Tate has seen at the Holiday Inn Express includes Halliburton, Encana, Great White Energy Services, Predator Pressure Control, Exploration Land Services and Total Pump and Control, among others.
