Good afternoon,
It sounds like a good idea at first blush.
Thanks to federal CARES Act pandemic funds and a glut of hotel rooms, New Castle County could snap up the Sheraton South hotel off Interstate 95. in the New Castle area at a bargain price (perhaps under $7 million).
The hotel could be used to deal with a surge in homelessness we will see in the coming months and even years.
The Sheraton South is now on the auction block as the industry struggles with dismal occupancy rates that have come from business travel and conferences slowing to a trickle. Leisure travel has seen an uptick but is subject to the whims of coronavirus.
But before jumping in with a bid, some questions need to be asked.
- Has the cost of taking the property off the tax rolls been considered?
- Is the location a good fit for the homeless population? The answer would seem to be no. The marshy location that has hobbled the hotel would leave a homeless population in isolation and dependent on nearly non-existent public transportation.
- The hotel sat vacant for years in a low-lying location. Have issues that could arise from that location been fully vetted?
- Would it be better to see if a private buyer emerges? The hotel might have a future as a limited-service brand under a number of brands. It is also possible for a patient operator might lease the property to the county over a limited period, wait for the market to right itself and thereby avoid a long-term burden on taxpayers.
- Should the impact on jobs be considered? Hospitality openings are a way for the homeless and others in challenging circumstances to grab a rung on the job ladder. In fact, much of the job growth we have seen in the last five years in Delaware came from hospitality. The loss of those jobs has been a giant factor in Delaware’s high unemployment rate.
It is admirable for the county to seek solutions for what will surely be a rising tide of homelessness. But buying a hotel comes with a lot of “moving parts.” Unless the above questions can be answered, it might be best to pass on what might at first seem like a hot deal. – Doug Rainey, chief content officer.
