Hotels Hosting Galas Ring In Big Business Along With the New Year

The partygoers arrived in tuxedos and sequined dresses, poised to bring in 2007 with an endless supply of champagne.

They came in packs, flitting between dance floors, casino-style games and karaoke bars. And they each paid hundreds of dollars to spend New Year's Eve in a fancy hotel-turned-nightclub.

Many Washington area hotels are cashing in on one of the most festive nights of the year. Partnering with popular event promoters and private party-throwers, more than a dozen hotels welcomed thousands of revelers into their halls and suites on New Year's Eve, taking a cut of the ticket sales and making a handsome profit on room rates.

During the holiday season, which is traditionally the slowest time of year for the Washington area's hospitality industry, hotels jump at the chance to bring in much-needed revenue while increasing their exposure to potential customers.

Hotel-hosted galas are becoming popular New Year's Eve destinations for young professionals in cities across the country, including New York, Baltimore, Atlanta and Chicago. Up until a few years ago, event promoters say, people tended to spend the last night of the year in nightclubs or bars and at private parties. Now, people with disposable income are looking for an all-inclusive package that provides food, drinks, entertainment and accommodations under one roof.

At the Wyndham Washington Hotel, 2,200 guests, some wearing tiaras or top hats, milled around 15 bars, three dance floors and 12 buffet lines as part of "Big Night D.C.," an annual New Year's Eve celebration. It took months of preparation to arrange for the caterers and bartenders. It wasn't cheap to bring in dozens of security officers and managers from affiliated hotels as far away as Williamsburg and Long Island to help staff the event, along with the clean-up crew needed the next morning to whisk away scores of empty beer bottles and to scrub wine stains out of carpets.

John Barry, director of catering for the hotel, said holding the New Year's Eve event for the third consecutive year was a no-brainer. The Wyndham rented rooms at a premium rate to its partygoers, filling nearly all its rooms at a time of year when the hotel usually has a 30 percent occupancy rate. Because of the demand for rooms, the Wyndham brings in 70 percent more revenue on New Year's Eve than on Dec. 30 or Jan. 1. The 1,200 people who stay the night often buy breakfast the next morning and shop in the hotel's store.

The promotion company, HiBall Events, marketed the gala, sold the tickets and booked the bands.

"They took care of all the details, and we get more people to come to the hotel at once than we would have had any other night of the year," he said. "And it's not just 2,000 people -- it's 2,000 people who might want to set up a business meeting here, get married here, or put up relatives here when they're visiting from out of town."

Brett Sullivan, 23, of Bethesda paid $150 to attend the "Downtown Countdown" bash at the Grand Hyatt Washington, a four-floor affair with 50 bartenders, four disc jockeys, four bands, five comedians, a five-piece jazz ensemble and a karaoke bar. It was his second year coming to the event, known as the largest gala of its kind in Washington, with 3,300 guests, and this time brought 15 friends.

"I would spend over $100 at a regular bar anyway, and here you get the overall atmosphere and a lot more people," Sullivan said. His only complaint: The same bands played at last year's party.

The galas also appeal to a crowd with a more discerning taste. Bill Harris, 56, of Vienna, a software engineer, attended the Wyndham party with his wife and two other couples. His 23-year-old daughter went to a similar party last year, and he wanted to see what all the hype was about. "It's an excuse to get out and mingle, and she likes dressing up," he said, gesturing toward his wife as he loosened his black bow-tie.

Tickets to the parties typically go on sale in early November for about $100, and prices increase as the big night nears. This year, nearly every hotel-sponsored party quickly sold out.

David Lindenauer, founder of Lindy Promotions, a popular event organizer in the Washington area, held its first "Downtown Countdown" 15 years ago, with 1,300 people attending. The party was the first of its kind in Washington then, Lindenauer said.

The event has since tripled in size, and other parties have followed in its success. This year, hotels including the Hilton in McLean and the Hyatt in Bethesda held formal parties with tickets ranging from $100 to $400 per person. Most of the galas sold out well before Dec. 31.

Even private parties prove to be big sellers for exclusive hotels on New Year's Eve. For the past five years, the Ritz-Carlton at Tysons Corner has held an annual holiday party for a company that draws 800 people who book 320 rooms at the corporate rate of about $400, compared with the less expensive rate of about $160 for the surrounding nights.

"Because of the demand on New Year's Eve, we're able to charge the full rate," said Iman Butler, director of sales and marketing for the hotel, who declined to name the company.

Many patrons who eat their last meal of the year at the Ritz-Carlton's restaurant, Maestro, also stay at the hotel. This year, all 398 rooms sold out.

"Even if they are local, [guests] don't want to drive home after staying up late and celebrating," he said.