by Marianne Gasaway
The Clear Lake City Council received a favorable report Monday night concerning the feasibility of a boutique-style hotel in the Surf District.
Creighton Schmidt, director of Finance and Administrative Services for the city, said a study by Patek Hospitality Consultants, of Sussex, Wis., projects the market can support a 60-room hotel suited primarily for leisure guests and those attending Surf events.
Based on 64 percent occupancy and an average daily rate of $187.50, the report says the upscale hotel would achieve stabilization in three years, Schmidt shared.
“A hotel like this really can command the rates for the market because it is unique, it is an upscale hotel, they would be able to be the rate leader in the market,” he said.
Schmidt told the Council hotels catering to recreation and entertainment are currently more successful in the hospitality services market.
“It’s been the business traveler and group business that’s really declined, while leisure travel has continued to remain strong, especially after those first few months of the pandemic,” said Schmidt.To read more of this article, please login or sign up for our E-Edition