Evening star., 1947-01-06
4 Hotels Granted
Raise in Rates
For 1ransiients
Raleigh, Annapolis,
! Homilton, Hoy-Adoms
Get 50-Cent Boost

+ X rs
-Four Washington hotels have
been granted an increase in tram
lsient 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 60 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, on
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 of
rising operation costs. AS long as
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 on
an occupancy of from 50 to IS per
cent in order to break even. In 1910,
the break-even point was 65 per cent
occupancy.
Receipts Drop 14.64 Per Cent.
Arthur Harnett, executive secre-
|tary Of the Washington Hotel Asso-
citation, reported a falling off of
business here. An association survey
of hotel revenues in November
showed drop in receipts of 1854
per cent over year earlier, he said.
This was broken down as follows:
Room sales, 1907 per cent; food
sales. 11.25 per cent; beverage sales,
25.4 per cent.
The hotel official attributed the
sharp drop In beverage sales to the
fact there was a larger number
|of discharged servicemen passing
through the city in November, la45.
Mr.. Harnett said hotel men re-
ported an even sharper drop in the
four categories during December.
so far this month, however, busi-
ness has picked up, result of the
opening of the Both Congress, he
said.
The national hotel industry claims
prices of hotel rooms are not related
to the cost of living since most
travelling people consider hotel room
rent as a business or pleasure ex-
pense.
Adjustments Individual.
Mr.. Harnett said that probably be-
tween Is and 30 per cent of Wash
ington hotels would ask for an in
crease in rates should the admins
tration decontrol rates elsewhere.
If decontrol should be ordered for
transient rooms, 1t would be the ad-
ministration's first major action in
the recent rental field.
Heretofore, OPA has granted rent
adjustments on an individual basis
and, in some areas where Army
camps and war industries have shut
down, has ordered decontrol
An OPA official estimated that
since rent controls were established
in 1912, the agency had granted ad-
justments to about one-half of more
than 1,600,0 600 applications. He added
that adjustments were being made
at rate of 10000 to 10000 per