THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Tuesday, February 4, 1997 TAG: 9702040204
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY BATTINTO BATTS JR., STAFF WRITER
DATELINE: PORTSMOUTH LENGTH: 79 lines
City officials thought that Portsmouth was missing out on a lot of money from business travelers, tourists and conventions because it has a shortage of upscale hotel space.
A new market study has confirmed their suspicions.
On an average night, 60 to 70 percent of the rooms in a hotel like a Marriott or Hyatt would be full in downtown Portsmouth, according to the $20,000 study, conducted by HVS, a New York firm specializing in hotel and hospitality services analysis.
The city is examining the possibility of adding another downtown hotel and building an adjoining convention center. Portsmouth officials remain cautious, however, saying an array of details, especially financing, still need to be worked out.
Still, they say they were encouraged by the study.
``Had the results of the study not come back positive, we probably would have terminated our effort,'' City Manager Ronald Massie said.
A separate study is being done to determine the ideal size for a downtown convention center.
Massie believes a facility that is between 15,000 and 25,000 square feet would be appropriate, but is awaiting the second report, which is expected to be completed within the next three to four weeks, he said.
Local governments have been more interested in the convention businesses since Norfolk opened its Waterside Marriott and Convention Center in 1991. Chesapeake is in the process of building a 51,000-square-foot convention center that is expected open next fall in the Greenbrier area. Virginia Beach officials have been considering a new convention center along the Oceanfront, but this week learned that a consultant instead recommended expanding the Pavilion.
In addition, should an National Hockey League arena be built in downtown Norfolk it might be available for large groups and could free Scope to better handle smaller gatherings.
Portsmouth is currently not considered a major player in the area tourism and convention market. Most of the city's visitors come on bus tours, Wheeler said.
The Holiday Inn on the city's northeast waterfront is undergoing a massive renovation and is Portsmouth's best hotel.
Tentative plans call for a new hotel of at least 250 rooms being built near the Holiday Inn, with the convention center also in the same area so it will be served by both hotels.
Rooms at the new hotel would likely cost between $85 and $90 a night, about $10 to $15 more than at the Holiday Inn, Massie said.
Collectively the hotels would have the ability to house nearly 600 people and give visitors a choice of accommodations. By expanding Portsmouth's hotel offerings, city officials hope to entice more people to spend money in the various shops, restaurants and museums downtown and throughout the city.
``A new major hotel would be a quantum leap for Portsmouth,'' said Ken Wheeler, director of marketing and communications for the city. ``It would be a whole new day for us.''
Massie said the dream of a new hotel and convention center is at least two years from becoming a reality. That's assuming all goes well.
The city, which is showing signs of an economic turnaround, must first determine how it would finance the project.
Portsmouth would likely pay for and own the convention center, which is expected to cost between $6 and $10 million, depending on size.
The hotel would cost about $25 million and be privately owned.
The city also must settle on an appropriate site on or near the waterfront for the projects. A number of locations between City Hall and the Holiday Inn are currently being considered, but Massie declined to elaborate in order to protect the city's interests during any negotiations.
It's possible that the city could have a deal with a developer to build the hotel and convention center by early spring, Massie said. After that, it would take several months for plans to be developed. Construction would then take anywhere from 18 months to two years, he said. ILLUSTRATION: Color photo by MARK MITCHELL/The Virginian-Pilot file
Portsmouth's waterfront skyline, at left, is dominated by Harbor
Tower, the apartment edifice at the top of the photo, near which a
new hotel could be built.