Letter: Base2 rates would have needed to be raised
January 25, 2016
According to recent articles in our local papers, the Colorado Hotel and Lodging Association reported that the average daily rate received by Aspen's hotels and lodges last year was more than $400. For the annual average to be that high, there had to be periods when the average must have been above $500 or $600.
Remember the fight over Base 2 Lodge? And remember that Base 1 already has been approved? One of the key promises for both projects was that their rates would be closer to $200. Those who were determined to see these projects built ignored a fundamental economic fact of Aspen. It is the "price umbrella" effect created by the high demand from visitors and the small size of our town. That inevitably drives up the prices of all types of lodging, virtually insuring that any new entrant can charge high rates.
With an average rate of more than $400 and a much, much higher average rate in high seasons, is it likely that any new lodge would settle for $200?
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