BY NANCY KELLY
Kings County Advertiser/Register
A new hotel in the Kingston/ Greenwood area has been deemed a “marginally feasible” endeavour by a hotel feasibility study, commissioned by the Kings Regional Development Agency.
The 49-page report was released May 10 at a meeting that drew about 35 people. Mitch Wile, consultant with Collier International, presented highlights compiled from available data on the local hotel market, interviews with market participants and modeling of historical market performance and future demand assumptions.
“The ultimate question is will a developer sell enough room nights to justify construction of a new hotel?”
Wile’s data indicates the Kingston/ Greenwood area could sustain an additional 40-room hotel property, which he estimates would cost $4 million to build. Given projected occupancy data, Wile pegged the market value of such a new property at $3.85 million, which would translate into a start-up loss of approximately $150,000.
“But anyone who goes into the hotel business does so for the long haul. The return on the investment comes from years of selling room nights,” said Wile.
Kings County Warden Diana Brothers backed the study, at the request of the two local village commissions, particularly Greenwood.
Greenwood village commission chairman Al Belliveau said the idea to build a hotel in the area began germinating three to four years ago.
“At a meeting with 14 Wing, it said it would build its own hotel if one isn’t built by the community. They are tired of having to put people up in hotels half-an-hour away.”
Despite being a “huge economic driver for the area,” 14 Wing’s policy and intentions about housing transient workers became “a red flag in a relatively small market” for Wile.
“Our study shows the ongoing supply is not meeting the needs and preferences of customers, but anyone who pursues this opportunity needs to go into it with a full understanding of the base’s intentions for future development of new barracks.”
The meeting drew some local hotel owners, including Derek Legard from the Falcourt Inn, who wasn’t impressed he had not been interviewed as part of the study. A representative from the Mid Valley Motel in Middleton shared the same sentiment.
Wile acknowledged potential customers had been the primary focus of the study, and appreciated the concern of existing property owners.
“I realize any potential for change in the market creates uncertainty and discomfort, particularly for those already in it.”
Wile’s research also shows potential hotel customers are looking for services and amenities not currently available.
“The information could lead to the development of a new hotel or could lead to new opportunities for existing properties,” said Wile.
