FREDERICK, MD -- The
Maryland Stadium Authority has released a Critique/Assessment of the Market
and Economic Assessment for a Full-Service Hotel and Meeting Space in Downtown
Frederick (2010 by Pinnacle/OPX).
The study update was prepared by Crossroads
Consultants and Hospitality and Gaming Solutions under contract to the Stadium
Authority. It concludes that Frederick has sufficient
market demand for a full-service, 200 room, branded hotel with 15,000 square
feet of meeting space in Downtown Frederick. The study further finds that the
hotel when stabilized will generate approximately 52,600 room nights, 280 jobs,
and $25 million in economic impact.
These findings are generally consistent with
the earlier study and confirms the need for such a facility in downtown Frederick. The Maryland
Stadium Authority and its team of consultants is briefing key elected and business officials this morning at the Chamber of
Commerce and other stakeholders and the general public at 1PM today in City
Hall.
“I am very pleased with the outcome of the
study,” stated Earl H. Robbins, Jr. the appointed Project Chairman. “Based on
the study findings, I believe that a privately-owned and operated hotel in
downtown with sufficient meeting space to induce new meetings and conferences
will be a game changer for this community,” he added.
The study was conducted at the request of The
City of Frederick, using technical
assistance grant funds from the Maryland Department of Housing
and Community Development (DHCD). The City was acting on behalf of the Downtown
Hotel Advisory Team consisting of the following organizations:
The Frederick
County Chamber of Commerce & Major Employers Group (MEG) –– Ric Adams,
President & CEO
Tourism Council
of Frederick County - John Fieseler, Director
East Frederick
Rising - Bob McCutcheon, President
Downtown Frederick Partnership
- Kara Norman, Executive Director
Frederick
County Business
Development and Retention Division (BDRD) - Helen Riddle, Acting Director
The City of Frederick - Earl H.
Robbins Jr. , Project Chairman
Josh Russin,
Executive Assistant to the Mayor
Richard G. Griffin, AICP, CEcD, Director of
Economic Development & Project Manager
Mayor Randy McClement offered that “the City
of Frederick
and this administration have focused
its energy and resources on infrastructure projects which improve the quality
of life and provide economic return for the community. Development of a
privately owned, operated and financed full-service hotel in Downtown Frederick
is part of that strategy, along with completion of Carroll Creek
Park, Monocacy Boulevard, Frederick
Municipal Airport Control Tower and increased sewer capacity.”
According to Ric Adams, President and CEO of
the Frederick County Chamber of Commerce, ““the Chamber and its Major Employers
Group (MEG) choose this project as its number one priority to retain and expand
the business community in Frederick County. The Chamber and MEG have helped
fund the original feasibility study and continue to advocate for this hotel
project in downtown Frederick.””
The study confirms the Frederick area has a growing population base,
with stable employment in the military and government sectors as well as
bioscience and technology centers. Property annexed by the City of Frederick in recent years
is nearing development which will also contribute to the tax base and
employment opportunities.
Maryland Stadium Authority Chairman John Morton III added his thoughts. “MSA was happy
to work with the City of Frederick
and their hospitality community to evaluate the market for a downtown
hotel/conference center,” he said. “This study provides stakeholders with the
information they need to decide how best to proceed with the project.”
Currently, Frederick County
has fewer than 1,000 hotel rooms, with an additional 100+ anticipated when the
Marriott Towne Place Suites is completed this summer. Focus
on Civil War history has increased interest in Frederick as a destination.
According to John Fieseler, Director of the
Tourism Council, “Frederick is fortunate to have
posted the highest increase in hotel room demand in Maryland during 2011 and over $300 million
in tourism spending.” He added that “presently there is not a full-service hotel
in Frederick
and this downtown hotel will fill a gap not being met in the market.”
Based on research and analysis of the growing
market and popularity of Frederick, Crossroads concurs with the Pinnacle/OPX
study’s conclusion that the community
would benefit on many levels from a hotel/conference center in the downtown
historic district –– including the creation of 280 permanent, full-time jobs
that would create $9 million in personal earnings and increased activity in the
retail/hospitality outlets.
The study offers recommendations of what
amenities and services should be included in the 200-room facility based on the
evolving industry standards. In
addition to a business center, Wi
-Fi connectivity, a pool and fitness center, the hotel complex should also
include a restaurant/lounge, room service, and retail outlets.
The meeting space recommendations are
consistent with the high-end brand the city should attract. A 5,000 -6,000
ballroom should be included in the 15,000 square feet of conference space,
along with a flexible layout to accommodate a variety of uses.
The feasibility study determined this type
facility would generate approximately 52,600 room nights with $16.5 million in
direct spending and almost $30 million in economic impact. In addition the
operation would generate significant local property taxes based on the assessed
value of the property. In conducting their research, Crossroads also found
interest in this concept from several national hotel brands.
Because
the study focuses on an unspecified
downtown location, Crossroads cautions that parking and access will be major
considerations and should be factored into any future decision.
The Downtown
Frederick Hotel
project originated from a business
community need identified by the seventeen largest major employers (MEG) in Frederick County and the Frederick County Chamber
of Commerce. In addition to championing this project, the initial feasibility
study by Pinnacle / OPX in January 2010 was financed by the partners including
the MEG Group and the local Chamber of Commerce.
Crossroads suggests that if the next steps
include selecting a development site and a hotel developer. The hotel team is
immediately issuing a Request for Information (RFI) from Downtown Frederick
property owners who are interested in submitting their property as a potential
location of a future Downtown Frederick hotel. A separate Request for
Qualifications (RFQ) to select a hotel developer will be issued this fall.
Contact:
Josh Russin Gary
A. McGuigan
Office of the Mayor Project
Executive
(301) 600-3834 Maryland Stadium
Authority
jrussin@cityoffrederick.com (410) 333-1560
