OCEAN CITY, Md. — Keith Whisenant, general manager of the Residence Inn in Ocean City, said May was “the best they’ve ever had,” when it comes to occupancy, largely due to a revamped event calendar.
“A lot came to town as far as events, the way they restructured the calendar, especially the concerts. That was a highly lucrative weekend for everybody,” Whisenant said.
The Fourth of July weekend, he added, brought in big crowds for nearly all local lodging businesses, providing a brief boost in what has otherwise been a slower summer compared to last year.
Whisenant noted June was down compared to last year, and July appears to be trending in the same direction. “July was pacing ahead for the longest time. Lately, it's started to pace backwards a little bit to last year,” he said.
That dip in demand isn’t just affecting hotels. John Magathan, owner of BluVista Vacation Rentals, said short-term rentals are on a similar track when it comes to occupancy, at least for now.
That could change drastically depending on the outcome of a July 22 referendum. If passed, the new rules would require short-term rentals in residential neighborhoods and mobile home communities to have a minimum five-night stay. By 2027, that minimum would increase to 31 nights.
Magathan said the average length of stay is already trending downward, hovering around four nights. Whisenant said hotels are seeing similar booking patterns. “It usually flows between a Friday, Saturday we can stay and then Sunday to Tuesday,” he said.
Magathan says the new rules could eliminate nearly all vacation rentals in affected areas.
“If you go to a 31-night minimum, that benefits us a lot because you're filtering out a whole other layer of customer,” Whisenant added, acknowledging that hotels might gain from the change.
The referendum has stirred debate across Ocean City, with residents weighing in on both sides of the issue. Local voters will have the final say when the special vote is held July 22 at the Ocean City Convention Center.