It looks like the economy is hurting every industry, including the hotel and hospitality sector. At the end of last month, some local hoteliers in North Carolina complained that their businesses have been hurt by some interesting competition. That competition is two hotels run by non-profit organizations in the immediate area of Carolina Beach.
The non-profit, CBP3, is fighting back. The organization didn’t move into the area to hurt local businesses so it has decided to play fair and accept proposals from any local management or hotel firm interesting in running the two hotels, the Surfside Motor Lodge and the Guy Johnson Motel.
The town’s attorney, Steve Coggins, is drafting a request for proposals that will include various contract terms including the number of years the town will lease the hotel properties and what is required to upgrade facilities. Apparently, the properties are in pretty bad shape.
Successful project management and coordination team bidders will probably end up paying almost $60,000 in fees, which is what the current hotel property manager pays. The town itself also pays a debt service on the property, which is intended to become the site of a fishing pier, though budgetary restraints have put that project on indefinite hold.
Local hoteliers are up in arms about the situation, claiming that they never had a chance to submit proposals to operate the hotels when the town bought them about two years ago. The rest of the issue stems from the current management being allowed to undercut other lodging prices in the area.
Regardless of who gets to manage these two hotels, we’re interested to see how it works out. If you are moving to Carolina Beach, or planning on a vacation there, sneak a peek at the hotels and let us know what you learn!
Jon Huser
