Hotels in tropical storm Gustav's path gear up

Olivier House Hotel manager Bobby Danner said his small family-owned hotel, built in 1839 in the French Quarter of New Orleans, was booked solid for a festival this weekend and has received a few cancellations.

But lodging in Baton Rouge, La., roughly one hour by car northwest of New Orleans and two hours west of Biloxi, is nearly sold out as first-responders, government agencies and contractors booked rooms.

Gustav's winds were gusting above 70 mph Thursday evening. The National Hurricane Center's Web site said the storm could turn into a hurricane Friday.

While a hurricane is obviously damaging to hotels in its path, those in surrounding areas actually get a boost as relief workers and construction workers move into the area, said Susquehanna Financial Group analyst Robert LaFleur.

In the wake of Hurricane Katrina, hotels also were used as long-term housing for people who had lost their homes.

"In a very sort of counterintuitive way, it was a net benefit for the hotels in the area because of storm displacement and temporary housing," LaFleur said. "It's not the way you want to boost your business, but unfortunately it's the reality."

Theresa Overby, a spokeswoman for the Baton Rouge Area Convention and Visitors Bureau, said that city is looking for space in apartment buildings to meet demand for lodging.

Coastal residents evacuating their homes are being directed farther north.

"We just don't have the inventory," Overby said of hotels in her area.