Grove Park Inn exec: Yes, times are tough, but we're doing fine

I had a good conversation today with the Grove Park Inn's executive director of operations, Ron Morin. Morin called in response to an earlier Ashvegas post, in which a reader wrote me to complain about recent lay-offs and about corporate bean counters tightening down the resort's bottom line.

Morin's message was clear: "We're not doing as well as we'd like to. I'd be lying if I said otherwise. But I still see that we're doing better than the majority of our industry."

Morin says the out of a core of about 900 staff positions, 24 filled positions have been eliminated over the last 18 months. There's been no targeting of long-time employees, and no refilling those jobs with new, lesser-paid staff, according to Morin.

I pressed Morin about the impact of the death of Elaine Sammons. As most folks know, Charles and Elaine Sammons bought the Grove Park Inn back in 1955, when Asheville was still a sleepy little mountain town. Charles Sammons passed away, and Elaine Sammons remained the head of Sammons Enterprises, the multi-billion-dollar corporation that continues to own the resort.

It was no secret that Elaine Sammons loved the Grove Park Inn, and loved Asheville. Every summer, she came and lived at the GPI for months. It was her vision to add the wings and expand the original structure. And it was her vision to build the $45 million spa, which has taken the resort to new tourism industry heights.

Lots of folks around town saw the passing of Mrs. Sammons as a passage that could signal a sale of the property. Morin, who says he speaks only for the Grove Park Inn, says he has no indication whatsoever that that is the intention of the corporate parent.

Morin asks why a company on firm financial footing would sell a property like the Grove Park Inn in one of the worst real estate markets ever. Morin also notes that communications from corporate indicate that the Grove Park Inn is to be the cornerstone of of its hospitality and real estate ventures.

The Grove Park Inn is building new condos next to the hotel, and it still has plans to build The Ellington, a new signature hotel approved last year for downtown Asheville. While The Ellington project is still "full steam ahead," there's likely not going to be much movement until the national real estate market improves, Morin says. A few year's ago, the Grove Park Inn proposed a hotel and a mixed-use building downtown, but those projects didn't materialize.

Meantime, the Grove Park Inn continues to pump millions into the property. Morin, a close reader of this blog and all GPI mentions online, countered my reference to the resort as "dowdy" a couple of months ago with the fact that the company just finished spending $2 million to renovate all guest rooms in the Sammons wing. 

Morin adds that the Grove Park Inn, looking ahead to an improved economy a year or two from now, decided to move forward with another major construction project. The background: several years ago, the Grove Park Inn had its signature roof tiles replaced, but the contractor who did the work botched the job and the case went to court. It was finally settled, in favor of the Grove Park Inn, and work has just begun a $4 million project to replace tiles on all curved surfaces of the roof, Morin says. 

In related news, there will be a July Fourth fireworks show this year at the Grove Park Inn. Everyone in Asheville knew that Elaine Sammons loved her fireworks, and the inn each year would put on a big show in July in honor of her birthday.

Morin wouldn't confirm this for me, but sources tell Ashvegas that the Grove Park Inn has secured permits for the same large fireworks display toward the end of this month.

Comments

[Davidinthe828]

Very interesting that GPI chose this individual to be the spokesperson to respond to the questions raised on this blog. So then, where is Craig Madison or the pr person? Isn't that now Susan Phillips who used to work at HomeTrust Clyde Savings Bank and Asheville Regional Airport?

Something seems to be up at the Grove Park Inn and it is clearly the increasing influence and control of GPI by the Sammons Corp. and new players coming onto the scene. This will be a most interesting story to watch.

btw, Jason you do an great job and provide the Asheville and WNC community a great service with the news and info that flow through "Ashvegas"

[Ash]

Davidinthe828, thanks for reading.

[Larry Held]

We had some friends from out of state who stayed there recently and we met them at the hotel and had dinner. The hotel seemed to be very slow that day. The food was ok, but not great as I had hoped. They showed us the small suite they were staying in and it was nothing special and a lot like your average Marriott hotel anywhere. I do not like the two huge wings that were added to the old building. They are cold, way out of scale, and just plain ugly. Sorry, but I don't think there is really anything extraordinary about the Grove Park Inn

[WNC Observer]

i'm not overly picking on this guy, but basically, this is not unexpected corporate talk. evasive slogans, no numbers, not even a ballpark percentage.

there's no way the industry can look as bad as it does nationally and somehow GPI or Asheville are markedly different. Of course ACT, Biltmore, GPI, etc, need to keep a happy face. understandable to a degree.

the luxury end of hospitality looks like its down close to 30% nationally, occupancy is at post 9/11 levels.
http://www.bloomberg.com/apps/news?pid=20601110&sid=aXBWkxayzfpA

people aren't driving
http://charlotte.bizjournals.com/charlotte/stories/2009/06/29/daily1.html?surround=lfn&ana=test

Biltmore was on record on this blog last year, the year of staycations, saying they pulled their marketing into a 5 hour radius.

consumer spending was up last month, but only on the strength of higher gas prices, and the savings rate is like at a 25 year high, which = no spending.

this is worse than last year, imho.

[Eric]

My wife and I were there the past couple days and they seemed to be doing very well. The Terrace restaurant appeared to be at full capacity Wednesday night as was the Spa yesterday.

[Charles]

Where is Craig Madison? Is he still the President and CEO of the Grove Park Inn?

Yes, I agree that something must be up at the GPI

[Hannah]

We called to see if they had rooms for some visitors who were coming here for the 4th July weekend. They had plenty of rooms, but the price was outrageous. We found them a room downtown at the Renaissance for half of what Grove Park was asking. They need to be realistic and charge what the market will bear, especially when tourism is down like it is today.

I don't care for the cold and impersonal feeling I get when I go there. The old part of the hotel has some charm, but it is all just too commercial and institutional for my taste. Nice setting, but severely lacking in mountain charm.

[shari]

I wouldn't believe Ron Morin if he told me the world was round. He came up through the ranks at GPI by back stabbing and a## kissing. He was always about himself and likes to hear himself talk, which is why he would have responded on behalf of the hotel instead of Craig Madison.