Evening star., 1947-01-06
4 4HoieIs Granted
Raise in Rates
For Transiients
Raleigh, Annapolis,
Homilton, Hoy-Adoms
Get 50-cent Boost


been granted an increase in tran
sient room rates, it was learned to.
day as hotel men in other parts
Of the country awaited a Govern
ment announcement on their long
effort to remove rate ceilings from
hotel rooms.
Robert F. Cogswell, head of the
District Rent Control Administra-
ton, disclosed that the Raleigh
Annapolis, Hamilton and Hay
Adams Hotels have been granted a
fiat 50-cent-a-day increase in room
rates. The increases are expected
to go into effect this week.
The increases, Mr.. Cogswell
pointed out, apply only to transient
rooms and do not affect rooms held
by permanent guests.
Covered by District Law.
Mr.. Cogswell conceded that ap-
plications for increases probably
would be forthcoming from other
local hotels If the Government or
dered decontrol of transient rooms
throughout the country.
Washington hotels are covered by
the District Rent Control Act and
would not be affected by any action
Of the Office of Temporary Controls.
Mr.. Cogswell said he did not be-
lieve he had the authority, under
the act, to order outright decontrol
of hotel rates here.
Maj. Gen. Philip B. Fleming, head
of the OTC. has promised an an
nouncement, probably tomorrow. or
what the Government intends to.dc
about ceilings on hotel rates.
The hotel industry reports SHARP
falling off of business in some sec.
tions of the country, In the face oi
rising operation costs. As long az
three months ago, the Hotel Indus
try Advisory Committee on Rents
asked OPA to decontrol transient
room rates. Because of increased
costs, hotels now have to count or
an occupancy of from 50 to IS pei
cent in order to break even. In 1910
the break-even point was IS per cent
occupancy.
Receipts Drop 1854 Per Cent.
Arthur Harnett, executive secre.
tary of the Washington Hotel Asso'
citation, reported a falling Off O
business here. An association surve,
of hotel revenues in Novembe,
showed a drop in receipts Of 14.6l
per cent over year earlier, he said
This was broken down as follows
Room sales, 1907 per cent; foot
sales. 11.25 per cent; beverage sales
25.4 per cent.
The hotel official attributed TIL,
sharp drop in beverage sales to tn,
fact there was larger numbe
lof discharged servicemen passinl
through the city in November, 1915
! Mr.. Harnett said hotel men re
ported an even sharper drop in thl
four categories during Decembef
I So far this month, however, bust
mess has picked up, result of TIL
opening Of the 80th Congress, h
said.
The national hotel industry claims
prices of hotel rooms are not related
to the cost of living since mos
travelling people considershotel room
rent as a business or pleasure ex.
pense.
Adjustments Individual.
Mr.. Harnett said that probably be,
tween Is and 80 per cent of Wash.
ington hotels would ask for an in.
crease in rates should the admins.
trstion decontrol rates elsewhere.
II decontrol should be ordered fol
transient rooms, it would be the ad.
ministrations first major action ir
the recent rental field
Heretofore, OPA has granted rem
adjustments on an individual basi!
and, in some areas where Army
camps and war industries have shut
down, has ordered decontrol.
An OPA official estimated thai
since rent controls were established
in 1912, the agency had granted ad.
justments to about one-half of more
than 100000 applications. He addet
that adjustments were being made
at rate of 10000 to $4,000 pei
month.