By Howard Packowitz
NORMAL – One of Uptown Normal’s two hotels is having financial trouble and seeking assistance from the town government in the form of a tax rebate.
The town council Monday night will consider returning to Hyatt Place about $88,000 in the first year of a two-year agreement, or roughly half of the $176,000 in hotel/motel taxes collected from the Hyatt over the past year.
The second year’s rebate would be calculated using a performance metric common in the hospitality industry, and City Manager Mark Peterson, in a report to the council, said it’s reasonable to expect the town to rebate $88,000 in each of the next three years.
Hyatt Place, 200 Broadway Ave. in Normal, opened for business almost two-years ago. Peterson said the 114 room hotel has struggled to meet initial performance expectations.
According to Peterson, Hyatt’s ownership group has found a lender to refinance the property, but the refinancing is contingent on the town government providing a short-term tax rebate.
Peterson’s report said Bloomington-Normal’s hotel/motel market has been “rather stagnant” in recent years, and the Hyatt faces increased competition with the opening of the new Radisson in north Normal and the Residence Inn by Marriott in south Bloomington.
Peterson noted Hyatt Place ranks as the best hotel in town, based on customer ratings on tripadvisor.com. The website said of the 349 reviews, 95 percent of them rated Hyatt Place as an excellent or very good lodging spot.
Peterson’s report said the “short-term financial bridge” gives Hyatt some time to implement new management and marketing strategies.
Peterson acknowledged the town already has made a substantial investment in the property, but he said town staffers believe the rebate is justified given the hotel’s importance to Uptown’s “overall commercial fabric.”
Howard Packowitz can be reached at [email protected]
