Hotel Study Concludes More Rooms Needed in Holdrege
25 Aug 2015
Hotel Feasibility Study; Develop a Marketable Product
A recent study showed a need for a new 40-room hotel in Holdrege.
Feedback from area business owners prompted the Phelps County Development Corporation to hire Core Distinction Group to conduct a hotel feasibility study this summer.
PCDC Executive Director Monica Boyken said local employers were saying that their visitors were more frequently staying in Kearney because of a lack of available hotel rooms in Holdrege.
“And, we've known for some time that new employees have been choosing to reside outside Phelps County when housing isn’t readily available,” she said. “Both situations negatively impact the economy.”
The hotel study recommended that 60 percent of the new rooms should accommodate corporate businesses and be furnished with king beds and that 10 percent of the guestrooms have extended stay features with the remainder of the rooms for leisure travelers.
To meet the needs of travelers and make the property competitive, the study also recommended amenities such as a bar and lounge, hot breakfast, pool and spa, fitness center and meeting room.
According to the study, hotels are good for the local economy. They provide new jobs, generate tax revenues and are essential to the operations of other local employers.
Boyken said the extended stay rooms will help with housing, too.
“New employees can choose to stay at the hotel for a few months, allowing some time to seek out a home in Phelps County,” she said. “Without that extra time, they find the housing they desire in nearby counties and commute. Once they’ve adjusted to the drive, we’ve missed out on a new resident and the economic benefits that come with growth.”
The PCDC is hopeful that the study will ignite the interest of an existing owner or a new investor.
Boyken said that local facility owners were the first to receive the feasibility study. “After all,” she said, “existing businesses are always the top priority at PCDC.”
Based on projected seasonal occupancy rates, a new 40-room hotel could generate close to $900,000 annually in hotel room fees.
The feasibility study, which is available to view online, also recommends three potential locations for a new hotel.
By Kristine Jacobson for PCDC