The city of Katy has plans to become not only a regional hot spot, but a national destination for tourists. City Council approved four hotel occupancy tax grant applications of nearly $151,000 at its May meeting to fund various tourism projects, and it also anticipates adding two new hotels to its inventory of five.

Grants included $110,000 to the Southland Conference for its 2014 basketball tournament, $2,695 to the Katy Area Chamber of Commerce for its community and relocation guide, $2,522 for Katy Market Days/Katy Merchants for the Old Town Katy Shopping and Dining Guide, and $35,750 for a way-finding signage project proposal.

"This is a win-win for everyone," Katy Mayor Fabol Hughes said. "When people bring money and they stay and fill hotels, we get sales tax revenue from the money they spend."

City councilman Chuck Brawner said the city is making headway in increasing tourism, but it has more work ahead. Annual events, such as the Southland Conference and the Offshore Technology Conference, also bring lots of people to the community where they get to see what Katy has to offer, he said.

"Having good accommodations is a start," Brawner said. "We also have a brochure emphasizing new businesses, and of course, Katy Mills Mall is an attractive area for those outside the area."

HOT in Katy

The city collects Hotel Occupancy Tax from hotels in the city limits. The Convention and Tourism Bureau then gathers applications for the grants, which are awarded to events and other projects promoting tourism with an emphasis on events that will promote Katy outside a 50-mile radius, such as the Katy Rice Harvest Festival.

Mendez said 15 percent of HOT funds have to be spent on the arts, with the rest spent in seven different categories, including historical restoration, preservation and museums, advertising, convention centers, construction and sporting events.

The money comes from "heads in beds," with 7 percent of a hotel bill going to HOT funds, said Linda Vourazeris, assistant city secretary.

The amount of money available depends on how much is collected. The Convention and Tourism Bureau's budget—which is the amount of HOT funds collected —was $772,713 for the fiscal year from Oct. 1, 2012 to Sept. 30, 2013. From that total, about $450,000 of HOT funds were awarded as of April 15, according to the city. The $110,000 granted to Southland Conference at the May meeting is part of the 2013–14 fiscal year budget, of which $417,000 of HOT funds have been collected.

The Southland Conference, which just celebrated its 50th anniversary this year, will return in 2014. Its 2013 tournament was the sixth time to take place in Katy and was heavily promoted in advertisements as well as television spots on ESPN channels, said Tom Burnett, commissioner of the Southland Conference.

Between the coaches and players, the conference brings about 3,000 people with it to the tournament, but it attracts about 12,000 to the games, he estimated. That translates into about $2 million in economic impact for the week, Burnett said.

Hotel plans

In April, Mousavi Development filed plans with the city for a Comfort Inn at Katy Mills. It plans to spend $4 million on a three-story, 45,000-square-foot hotel, according to the permit.

Also on tap near the mall is a Courtyard by Marriott, which will be built by Midland-based Insignia Hospitality Group. It will have 111 rooms, 4,000 square feet of meeting space and a Courtyard Bistro serving breakfast and dinner, said Rachel Overman, an Insignia spokeswoman.

The company plans to break ground at the end of the first quarter or beginning of the second quarter in 2014, with a completion date in 2015, she said.

"This is certainly going to give us the additional rooms we need," Hughes said. "We have a lot of events like the Southland Conference...and they fill up the rooms, so we need the hotel space. Plus, it gives us more hotel and motel tax funds to do things for Katy."

Small town promotion

Mendez said he has a lot of ideas for adding to Katy's tourism dollars, including adding more evening events that would encourage visitors to get a hotel room for the night.

Katy Mills Mall, the No. 1 tourism attraction in Katy according to the Katy Economic Development Council, also promotes the city by forming relationships with area hotels, said Stephanie Torr, corporate director of tourism for the mall.

Promotions include shop-and-stay packages offering discounted hotel rates and an American Express/Simon gift card. She said it also provides a coupon book for up to $500 in savings at the mall.

Mendez said he would also like to see Katy establish itself as a destination for conventions, meetings, events, trade shows and leisure travel. To do that, he said, the city needs to develop a master plan for branding and marketing initiatives, and facilitating synergy among hoteliers, event facilities, retailers and other destination partners.

"The more people we get to stay in Katy, the more money we could use to promote and attract people and businesses to the city of Katy," Mendez said.