Airport hotel a financial drain, city says

DAYTON — The city invested $4.5 million in renovating the Dayton Airport Hotel between 2000 and 2006, but the 39-year-old hotel generated just $62,000 in revenue for Dayton International Airport last year and will cost the airport an estimated $50,000 to operate in 2009, the airport administration says.

The two-story building has no elevator, is not affiliated with a reservation/booking network, room rentals have been declining, and about one-third of its approximately 150 rooms need renovation before they could be rented, said Iftikhar Ahmad, Dayton’s aviation director who oversees the airport. A study has projected that the airport could generate $750,000 annually by using the land the hotel occupies as a parking lot. The hotel now provides free parking.

That led to the city-owned airport’s announcement Monday, Nov. 16, that it will close the hotel Jan. 31, 2010, and demolish the building to clear the way for an economy-rate parking lot, where customers could use credit cards to pay for parking.

“It should be a revenue source, not an expense source,” Ahmad said Tuesday.

CWB Property Management Inc., a suburban Columbus company, operates the airport hotel under contract to Dayton. About 35 full- and part-time jobs, will be lost when the hotel closes, said Larry Wheeler, the hotel’s general manager. Employees were informed Monday and have been asked to stay on for as long as possible, Wheeler said.

The city will have to hire contractors to liquidate the hotel’s contents, demolish the building and install the parking lot and the pay-for-parking systems, Ahmad said. The parking lot could be operating by late summer, he said. It would add about 650 economy-rate spaces to the airport’s current 1,350 economy parking spaces.

White Hills LLC, a Cincinnati developer, is to build a new Holiday Inn Hotel and Suites at the airport and pay the airport $48,800 annually in lease fees for use of the land, under an agreement the city announced in January 2009. The new, privately operated hotel is to be open by the end of 2010. Until then, travelers have the option of off-site hotels within 15 minutes of the airport, Ahmad said.

The current hotel was built in 1970 by private interests. The city bought it out of financial receivership in 1999 and has had a contractor operate it since then.

About the Author