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Hernando Today

New Hotel Hopes To Beat The Odds

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By TONY HOLT

Hernando Today

Published: March 6, 2009

RIDGE MANOR - The plans for a sparkling new Holiday Inn Express were under way two years ago and construction began less than a year later.

The east end of Hernando County had Interstate 75 and little else, but it seemed like a prime location for a new cluster of hotels.

Owner Ram Reddy was thrilled with the investment and he looked forward to cashing in on the spurt of development, businesses and corporate travelers.

Then the recession hit.

"By the time we broke ground, the economy was still good," Reddy said. "Now tourism is down ... unemployment is up.

"We're going to as many businesses as we can, marketing our hotel," he added, acknowledging the current state of the economy and looking at the future optimistically. "We're making sure our service is good. We have to do that. This area is going to have a lot of houses coming and a lot of golf courses coming. When it picks up again, we'll be in a good position."

Reddy had the same vision in 2006 and 2007 that many others had nationwide. The industry was hitting its full stride and expectations were high.

Today, forecasters are predicting the lowest occupancy percentage in more than 30 years.

By noon Thursday, 35 percent of the Holiday Inn's 78 rooms were occupied. Based on averages, that number was expected to jump to 65 percent eight hours later.

On weekends, the hotel sees up to 80 percent occupancy. It has been open since October 2008, but it held its grand opening Thursday.

By comparison, the national average for occupancy in 2009 is expected to be 57.2 percent, or 5.5 percent below the 20-year average, according to PKF Hospitality Research out of Atlanta.

Hotels nationwide reportedly carry more than $250 billion in mortgage debt and property values are plummeting.

The massive debt was accumulated when the industry overshot forecasts. Supply is significantly outweighing demand.

"We're doing very well," insisted General Manager Tamara Witeck. "We've definitely grabbed our market share."

The hotel features an outdoor swimming pool, fitness center with three cardio machines, continental breakfast area with 10 tables and a flat-screen television, snack room and a luggage storage room.

The conference room was transferred Thursday into a welcome center filled with food and refreshments.

Witeck hopes to fill it often with business conferences, receptions, reunions and community events.

Corporate travel might be down nowadays, but it is still a major component of the hotel's business.

"This is still the right hotel for the business traveler," Witeck said.

The area along I-75 already has a Best Western, Hampton Inn, Days Inn and Microtel. The Microtel opened last summer.

The Holiday Inn Express employs about 20 people, Witeck said.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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