04/09/1996 Minutes - Laserfiche WebLink

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Guisse, representing the hotel, explained the operation: daily maid service is offered if the guest wants it, normally there is weekly maid service; this hotel would be open to anyone, not just business guests; there are 3 types of suites, an efficiency; a one bedroom; and a two bedroom; all rooms have kitchens; there is work out facility and a small sdvimming pool in each building; but there is no food service; the typical guests stays more than a week; and the fees typically run about $320.00 per week. Mr. Brennan stated that there are several moteUhotel efficiency type units in Fairview Park which have turned into a nightmare for that city. Mr. Guisse maintained that many business travelers preferred having a kitchen when they were staying several days. Lodging analysts are projecting that 10% of the hotel business is extended stay business. He had no prospectus for Studio Plus with him, but he will provide one. He advised Studio Plus has 25 extended stay hotels open, and plans to have 100 open by 1998. He named several other national chains that are starting extended stay hotels and clarified that the Residence Inns were a more upscale extended stay facility. Mr. Manning and Mr. Brennan axe concerned because this is a new concept which might attract transient type customers; there could be a problem since daily housekeeping is an option; and the hotel residents might be a problem for the residents of the abutting apartment building. Mr. Guisse did not believe this would be the case since most of their guests are business travelers; and stated that old motels where people are living for long periods of time are not really extended stay hotels. Ms. Cameron Alston questioned if there were a maximum occupancy, in case someone rented a suite and invited many others to share it. He responded that the ma.nager would enforce the occupancy limitation, but someone might slip another person in. Mr. Mauning still believed that people might use a hotel suite as an apartment. Mr. Guisse doubted that since they catered to the business traveler and what the members are talking about are not extended `stay facilities. In response to questions, he advised that their other hotels were located in the metropolitan areas, but he was not sure which ones were in the suburbs. They are also looking at Westlake for another site. Mr. Herbster pointed out the disclaimer on the market research information and questioned why the commission should consider these figures valid and doubted that he could make a decision on information that might not be accurate. Mr. Guisse responded that most market research analysts include a disclaimer. Mr. Brennan believed that the developer should do more to bring more corporate offices, and then, if needed, the hotels should follow. Mr. Corsi advised that the developer does try to find tenants for office space as does the city. They have the majority of the office space in the city aud they contact all the various brokers to attempt to lease it. He noted that this azea had the highest vacancy rates and it is obvious that there is little demand for office space at this time. He noted that the city's office of Economic Development has not been able to attract office users. In reference to the extended stay hoteLs, he advised that there are several areas, Independence, Seven Hills, Fairlawn Copely Bath area and other cities that are comparable to North Olmsted that do have extended stay hotels and he does not think there should be a comparison with Fairview Park. He maintained that the need for this facility is d.riven by the market as it is today, the down sizing of offices and the trend toward sending employees to an area for a extended period of time. Mr. Herbster doubted if there was a need for six hotels in the city. He believed that there was a limited need for this type facility and was concerned that some of these hotels would fail. Mr. Corsi disagreed, stating that there was a need for different types of facilities. Mr. Brennan believed that need for hotels was driven by the office space in the city, and he did not see the need here. He questioned if the majority of hotel occupancy in North Olmsted was for business travel, he thought the many of the hotel guests were travelers going through the city, which was not something should be depended upon. Mr. Guisse repeated that the occupancy rate in North Olmsted is at 85%, and that he had to call a week in advance to get a room. He stated that the business for the hotel is already here. Mr. Corsi agreed stating that North Olmsted is a regional area because of its retail area, its location both to the airport and to downtown Cleveland. Mr. Mavning believed that the fact that Ohio is rated fourth in the k 1,.v 2