Forget Hollywood … Head to Conejo?

On a typical weekday afternoon in the Conejo Valley, hotels are full of an odd mix of professionals, ranging from suit-clad insurance executives to biochemists from around the globe. But those business travelers – drawn by the likes of Thousand Oaks biotech giant Amgen Inc. and health insurer Wellpoint Inc. – depart on weekends, leaving hoteliers struggling to fill all those empty rooms. Now the cities of Agoura Hills and Thousand Oaks, along with their 14 hotels, have teamed up to form a Tourism Business Improvement District with the hopes of improving the soft weekend market. The district will charge a $1 per night fee to fund a joint marketing campaign aimed at attracting travelers to the area looking for a weekend getaway at the beach, the local mountains and other attractions. “We have a lot of people that travel here for business, but they don’t think to bring their families,” said Jill Lederer, chief executive of the Greater Conejo Valley Chamber of Commerce, which will spearhead the effort that begins Aug. 1. “We’re not creating a destination. The destination already exists.” But much to the dismay of its own city, the two leading hotels in Westlake Village – the Four Seasons and Westlake Village Inn – have opted out of the district. Still, the participating hotels have about 2,000 total rooms, which means the BID should be able to raise about $450,000 annually for the marketing campaign, according to Lederer. The fee will be in addition to a bed tax the communities already charge in each hotel. Hospitality consultant Bruce Baltin, senior vice president at PKF Consulting in Los Angeles, said the campaign could be successful, but the approach should be to position the market as an alternative hub for Southern California travelers. “It’s not really a destination itself, but they could be successful to attract people to use it as a base of operations,” he said. “If you can bump up weekends 10 or 15 percent – that equals a lot of money.” ‘Rising tides’ While hotels have no problems filling the beds early in the week, they suffer on the weekends. The Hyatt Westlake enjoys occupancy rates above 90 percent during the week, but it can plummet below 60 percent on the weekends, said General Manager David Coonan. “Weekends are tough, there’s no denying it,” he said. “This TBID should help get more travelers in here.” That’s not surprising given that outside of business travelers and residents of the bedroom communities, the Conejo Valley is little more than a stop on the 101 corridor between Santa Barbara and Los Angeles. A board will be formed to manage the tourism district once the fee goes into effect. It will include one executive from each of the 14 hotels, in addition to city officials, members of the Conejo Chamber and outside consultants. At that point, a marketing strategy will be developed. It likely will be cross-platform with print, broadcast and Internet advertising, Lederer said. Ads could start as soon as the end of the year. Other greater Valley communities, including Burbank and Lancaster, have recently formed similar tourism BIDs. Burbank has 15 hotels participating in its BID and expects to raise about $520,000 annually. “The industry has recognized more and more that rising tides helps all ships,” Baltin said. And though it will certainly be tough to compete with the sun and sand in Malibu or glitz of Los Angeles, the Conejo Valley is a high-income area with luxury retail, such as The Oaks mall and the Shoppes at Westlake. It also has some fine dining, including a Mastro’s Steakhouse and Grill on the Alley. What’s more, the Santa Monica Mountains National Recreation is minutes away for hikers, bikers and outdoors lovers. Coonan, general manager of the Hyatt Westlake, which has its address in Thousand Oaks, sees opportunity in the campaign. “The TBID will generate occupancy in the Valley. When rooms pick up, you can start to drive a better weekend rate. The more people that are coming here, the more we can charge, the more money we can make,” he said. Bow out Matt Huss, the general manager of the Sheraton Agoura Hills, also expects to see a boost in occupancy by early next year, but sees the tourism district more as long-term solution to the area’s vacancy problem. “It’s not going to be a quick hit. This should impact the community for years to come,” he said. Still, the district would have been stronger had Westlake Village participated. (With only the Marriot Residence Inn willing to participate in the campaign, the City Council opted out of the district.) The prominent Westlake Village Inn is an established resort on Westlake Lake that has had its image emblazoned on travel brochures for decades. The Four Seasons, built by billionaire and Dole Food Co. Chief Executive David Murdock, also doesn’t really need help filling the beds. Murdock built the hotel in 2006 and it includes the California Health and Longevity Institute – a medical spa. Room rates easily push $300. Agoura Hills Assistant City Manager Nathan Hamburger said the tourism district will still be successful without Westlake Village. “It would have bolstered our effort to have them on board, of course. But we still have something real strong to build off of with our city and Thousand Oaks,” he said. Ironically, it’s likely that even without participating, Westlake Village will benefit from a bump up of local tourism in a region that spans 14 exits on the 101 Freeway. Westlake Village is just six square miles and nestled between the two larger cities. Even so, Westlake Village City Manager Ray Taylor hopes his city can get involved in the tourism district in the future. “The City Council was supportive of the TBID. We’re a bit disappointed that our two hotels were not supportive of the effort,” he said. “The hope is that when the TBID is formed and gets going, it might be revisited.”