This past spring, our senior leadership team was reviewing some key metrics at the close of our fiscal year. One of those metrics that we track annually is the occupancy rate at Assembly Inn. Emily Causey, our vice president for hospitality, reported that Inn occupancy for the year ending April 30th had reached a new high of 54%, a figure almost twice the rate reported a decade ago. This is an especially important metric in “breaking the cycle” referred to in last week’s post.
What struck the team, however, was Emily’s observation that the Inn was approaching capacity with little room for future growth. That might seem strange, but a closer look explains Emily’s point of view. First, the numbers:
| Number of Rooms | Occupancy Rate 2023-24 | |
| Assembly Inn Rooms (Total) | 100 | 54% |
| Assembly Inn Rooms with ensuite, private bathrooms | 80 | 64% |
| Assembly Inn Rooms sharing adjoining bathrooms | 20 | 21% |
There are eighty rooms with ensuite bathrooms, which achieved an occupancy rate of 64% in the most recent fiscal year. The twenty remaining rooms share an adjoining bathroom; the occupancy rate for those rooms was 21%. Primary factors accounting for the difference include:
- The 80 rooms with private baths are the most requested and the first to fill.
- We can often rent rooms which share an adjoining bathroom only with the understanding that the second bedroom will remain empty, turning the adjoining bathroom into a private bathroom.
Put another way, on many nights our 100-room Assembly Inn functions as a 90-room Inn, and that reality casts a shadow on the upper limits of occupancy.
Other insights emerge when comparing seasonal occupancy rates:
| Quarter | Occupancy Rate |
| Summer (Jun, Jul, Aug) | 72% |
| Autumn (Sep, Oct, Nov) | 60% |
| Winter (Dec, Jan, Feb) | 23% |
| Spring (Mar, Apr, May) | 55% |
Assembly Inn sat completely empty on 69 nights last year, and 47 of those nights occurred during the winter quarter. Emily’s point about the Inn “reaching capacity” was not a mathematical observation, but rather an observation about our current programs. With summer occupancy representing something of a ceiling, autumn and spring – the “shoulder seasons” – are catching up. Without new, innovative programming for the winter months, however, the annual growth of occupancy rates will become more difficult to achieve.
That should matter to anyone who loves Montreat. Among the factors that have broken the cycle, the Inn’s rising occupancy ranks at the top. Along with improved hospitality and guest experience has come increasing revenue that covers operating costs in our recreation, arts and crafts, conferences, and many aspects of community life.
The good news is that we have succeeded in tackling this challenge before. Ten years ago, occupancy rates in autumn and spring nestled much closer to winter numbers than to the summer numbers. The renovation made the growth possible, but new programming, better staffing, and improved communications to the church made progress in the shoulder seasons a reality. If we hope to increase occupancy rates meaningfully going forward, our program offerings must make a winter leap.
Finally, upon reading above I thought of three questions that this post might prompt:
I thought you were “full” in the summer months. What’s with the 72% occupancy rate?
First, the 72% occupancy rate for summer quarter includes the month of August; while that is a busy month for us, June and July are the “full” months…and even in those months, Assembly Inn remains mostly empty on Saturday nights. This “empty night” is essential if we are to turn 100 rooms and clean the Inn in time for guest arrival on Sunday.
Why don’t you add bathrooms to some of those bedrooms that do not have their own?
Bathrooms could not be added to those adjoining rooms without rendering those bedrooms unusable. These bedrooms simply do not have the space to accommodate ensuite bathrooms.
How much of the increased hospitality revenue achieved over the past decade is due to rising room rates at the refurbished Assembly Inn?
With minor exceptions, Assembly Inn room rates remained fundamentally stable from the Inn’s reopening in 2014 through this spring. Why? First, we knew we needed to increase occupancy and we did not want pricing to deter that growth. Second, we did not want pricing pressure to drive away churches and other groups who had stuck with us pre-renovation. Third, and more recently, the pandemic played a role as churches navigated uncertain financial times along with the conference center.
With rapidly increasing occupancy rates now likely on the wane, and with increasing inflation pressure in recent years, room rates will rise in the near term, ideally at a reasonable, affordable rate.
Overall, these are challenges, but we are better positioned to tackle them thanks to the demanding work that started this turnaround twenty years ago. We aim to keep that cycle “forever broken.”
Thanks to all who have filled out our community survey. If you have not filled it out, please feel free to participate. Have a great week!
Richard DuBose
President, Montreat Conference Center