Major chains have their sites set on the capital city; effects on locally-owned operations unknown.

Jean-Pierre Andrieux calls it just another straw hat, but seeing legendary gangster Al Capone’ hat displayed under glass is a memory few tourists forget after visiting his St. Pierre-Miquelon hotel.

Andrieux, who is currently constructing a four-story addition to his Harbour View Inn on Water Street (it will become the Marriot after the addition is complete), says Capone’s hat is nothing compared to the attractions in this province.

“Anything is good for an attraction and Newfoundland is very rich with its history on its own,” Andrieux tells The Independent.

The infamous hat was given to his grandfather, whose general store was converted to an inn by Andrieux and his wife. Capone visited the island in its glory days as a rum-running hub.

During one such trip, Capone stopped by the general store and his grandfather commented on Capone’s hat. The world’s most notorious gangster gave the hat to the shopkeeper. The famous hat wasn’t immediately enshrined; it first spent time as a play toy for Andrieux’s mother at the family’s country home.

“I rescued it….If it had stayed (there) much longer, it would have been destroyed,” he says.

Not only has Andrieux brought his considerable hotel experience to St. John’s, he’s also brought on the largest hotel chains in the world with him. With only a handful of Canadian properties just a few years ago, Marriott has been on a buying binge and now operates more than 50 hotels in Canada. They’re aiming for 150.

“It should bring tourism that follows Marriott products around the world, with their 2,600 hotels, they have a strong following. We think it will perhaps bring extra people in that fashion also.”

Within the next two years, at least 400 hotels rooms will open in the city. It’s a much needed boost to a market that often has no room at the inn during the months of July, August and September, when the occupancy rate often pushes the 100 per cent mark. Since 1999, according to a Destination St. John’s study, occupancy has actually declined by six per cent, as more hotel chains set their sights on the capital city.

Bill Mahoney, chairman of the Downtown Development Commission, says the decline in the occupancy rate is not a negative. “The hotel business in St. John’s is one where you have 12 months of expenses and seven months of revenue,” says Mahoney. “It creates some challenges to operate a business under those circumstances.”

The expansion of The Delta will add 125 rooms to the market this summer. On Higgins Line, economy hotel giant Super 8 will open its doors this year. A number of other projects are currently under construction or in the planning stages.

“St. John’s is a very attractive conference destination so when these conference planners look to St. John’s and they see a shortage of accommodations, there’s no that’s going to impact on their decision.”

For every dollar spent by those attending conventions, according to Mahoney, nine times that amount trickles through the economy. For each day spent in the capital city, the average amount injected into the economy is $250 per person. Hotels are also large employers, though most of the jobs usually pay minimum wage. Typically, the ratio is one employee for every guest room. The average hotel room can cost more than $100,000 to construct.

“It’s a great expression of confidence in the city, in the economy of the province because those people study the market very carefully,” says Mahoney.

“They’re here to stay. They have deep pockets and they have staying power.”

But with larger chains locating in St. John’s, bed and breakfast operations and local hotels could fall victim to the growth in the city’s hotel industry.

“The B&B’s have really flourished because of the demand for that accommodation in the summer months … and now that the larger chains want to establish themselves here, those B&B’s won’t enjoy the same level of revenue they have in the past,” says Mahoney. “Hopefully we won’t lose any.”

While the occupancy rate for those few summer months is among the highest nationally, which should drive room rates up, rates in St. John’s are among the lowest of Canada’s major cities.

“It is a bit of an anomaly,” says Mahoney.

Other cities may have theme parks or professional sport teams, but Andrieux says St. John’s has what those cities will never be able to construct – million-dollar views.

“I think to a visitor this is very important,” says Andrieux, looking out the window. “We don’t appreciate the beauty of this.”

Jeff Ducharme, The Independent, Sunday through Saturday, April 17-23, 2005.