City considers funding for hotel market study

The Glenwood City Council has been asked to consider funding a comprehensive hotel market study for a possible “upper midscale hotel” to be located within the city limits.

Mills County Economic Development Director Rick Allely presented a seven-page written proposal to council members at their regular meeting Sept. 27 on behalf of Wisconsin-based Hospitality Marketer’s International, Inc. (HMI), a firm that has been contacted about conducting a market study in Glenwood for a potential hotel developer.

Allely said the potential developer has expressed strong interest in bringing a national chain hotel to Glenwood.

“They’ve looked at the community,” Allely said. “I don’t know about the council’s feelings, but I’ve been beating the drum that we need more places to stay (in Glenwood).”

According to HMI’s proposal, the study would cost the city $7,250, a discount from the firm’s normal fee of $7,900 because they will also be in the area conducting studies in Plattsmouth and Sarpy County, Neb.

When questioned by council members, Allely said it isn’t unusual for a municipality or local governing body to fund a market study of this nature.

According to the proposal, a potential site has not been determined and the price category for the hotel would be midscale – upper midscale. No specific brand affiliation is identified in the proposal.

The market study would help determine the style, size and location of the hotel. Allely said the study would involve analysis in several areas, including traffic patterns and the number of venues in the area that would attract visitors to the Glenwood community.

Allely said there are no guarantees, but the developer has expressed strong interest in Glenwood and he believes the proposal is worthy of consideration.

“There’s potential for jobs, expanding the tax base and supporting existing businesses,” he said.

The hotel market study was on the agenda for the council’s Budget and Finance Committee meeting Tuesday night (Oct. 11). Should the council accept HMI’s proposal, the study would be completed within 45-60 days.