Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, July 20, 1990                   TAG: 9007200278
SECTION: VIRGINIA                    PAGE: B-3   EDITION: METRO 
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE:                                 LENGTH: Medium

ECONOMIC LOSSES LINKED TO HOTEL ROANOKE CLOSING

"The impact has been tremendous, and it shows that the city has got to do almost everything that it can to help assure that the hotel reopens," Schlanger said.

Brian Wishneff, chief of economic development for the city, said Thursday the city has lost eight conventions in 1990 and 1991 because of the Nov. 30 closing of the hotel.

Wishneff said the loss of the conventions has had a ripple effect on the city's economy. He estimated that it caused the loss of $2 million to $4 million in business for hotels and motels, restaurants and other retail stores.

The loss in taxes "is sad, but what is even sadder is the impact on restaurants and other businesses in the market area," Schlanger said.

A survey of 15 restaurants in the City Market area showed that business is down at nine of them so far this fiscal year, he said. The loss of business is probably attributed to the lack of customers from the hotel, he said.

Eight downtown restaurants either have closed or been sold since the hotel closed, he said.

"When the hotel closed, there was a lot of nostalgia and sadness, but a lot of people didn't realize the economic impact for the city," he said.

Schlanger predicted that the reopening of a renovated hotel could generate up to $1 million per year in tax revenue for the city. Schlanger, who recently completed a study of the economic impact of the hotel closing, said some taxes on Hotel Roanoke, such as real estate, personal property and others, were based on 38 percent occupancy.

The $310,000 loss in tax revenues was based on that low occupancy rate. This included $104,000 in meals taxes at the hotel.

Schlanger arrived at the $1 million figure by presuming that a renovated hotel would have a higher occupancy rate.

Wishneff said the closing of the hotel has left the Roanoke Valley without a headquarters hotel for major conventions and other events.

The city has been working with the Marriott and Sheraton hotels near Interstate 581 and Hershberger Road to serve as headquarters for major conventions, he said, but there are logistical problems.

"They have been very helpful, and it's working OK, but it's not like having one headquarters hotel," he said.

Meanwhile, city officials continue to talk with Virginia Tech about the city's role in the hotel renovation and conference-center project. Wishneff said no decision has been made on whether the city will help finance the conference center, which is separate from the proposed convention and trade center that would be financed by the city.