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Layton • Managers of the Hilton Garden Inn in the Davis Convention Center contend they are losing business because potential patrons, unable to get alcoholic beverages at their hotel, are booking rooms instead in Salt Lake City or Ogden.
The state's acute shortage of bar permits has prevented the Hilton from acquiring one of those licenses for the past three months. And there's no guarantee the hotel will fare better this month, when several establishments will apply for the one or two licenses expected to become available.
Lawmakers will consider freeing up more restaurant permits when the Legislature convenes Jan. 24. But there are no plans to create additional bar permits, whose numbers are based on a population formula that has been in place for 25 years.
"We're losing guests," said Dave Hilliard, Garden Inn's food and beverage director. "We're getting complaints that we don't have a lounge or bar that guests expect, and the Hilton brand requires."
The Hilton lost its bar permit when the operator of the hotel's Club Fahrenheit failed to renew the hotel lease but transferred the liquor license to a new site less than a block away. The club then reopened as Summit Lounge.
Guests typically prefer to remain in the hotel rather than traveling even a short distance to get a drink, Hilliard said. Because no other hotel in Davis County has a bar license, patrons are opting to check into rooms in Salt Lake City or Ogden, he added.
"Many of the people we serve are from large corporations, which is part of a larger circle of businesses," he said. "If we lose them to other hotels, they may not come back" to the Hilton chain.
The Garden Inn also manages The American Grill restaurant, which is licensed to serve alcohol. But state law requires diners in restaurants to order food with alcoholic beverages. Many guests simply want a drink, which can be served only under a bar permit, said Hilliard.
The 147-room HiIton Garden Inn is attached to the Davis Conference Center, which draws about 250,000 people annually. More than 100 employees work at the center at 762 W. Heritage Park Blvd. Western States Lodging and Management, based in Taylorsville, operates the conference center for Davis County.
Davis County Commissioner Louenda Downs said having alcohol available at the convention center "is one piece of the many components that make up a conference. Some individuals, both in and out of state, are used to having that option available when they travel to a conference."
Kent Sulser, Davis County's director of Community and Economic Development, suspects that without a bar license, the center is at a disadvantage in competing for conventions. Having a full range of liquor service also would bring "significant amounts of revenue" to support its operation, he added. "Added revenues from a club license can be kept in-house to better improve our programs."
In the upcoming session, legislators are expected to consider a bill that would free up 25 to 30 restaurant licenses by reducing the number of tavern licenses.
Another draft bill would allow establishments to sell their liquor licenses to the highest bidder, potentially making more permits available. Neither proposal, however, would increase the overall number of watering holes.
Legislative auditors advised lawmakers to consider changing the state's quota system to create more permits because more Utahns are dining out and imbibing. While Utah's population increased 22 percent from 2001 to 2009, consumption of alcoholic beverages went up 54 percent.
Sen. John Valentine, R-Orem, sponsor of the liquor package, said he does not have the support of major "stakeholders" whose support will be needed to change the state's population formula. Among those objecting are leaders of The Church of Jesus Christ of Latter-day Saints, which eschews alcohol.
Liquor permits run dry
R The Hilton Garden Inn, in the Davis Conference Center, is the latest club to go without a bar license. The Hilton closed its bar three months ago when its licensee moved out. In December, 14 establishments applied for three bar licenses, leaving 11 empty-handed. More permits will become available only if other clubs go out of business or the state's population grows.