Plans by the Army’s privatization partner to build a new hotel at Fort Drum, N.Y., would hurt existing hotels in the area surrounding Watertown, N.Y., which already has witnessed the construction of eight hotels in the past six years, according to some members of the local hospitality industry.
Developer Patrick Donegan has asked the Watertown City Council to oppose the project because the local market already is saturated, reports the Watertown Daily Times. The region’s occupancy rate is between 50 and 60 percent, he said. Donegan said his hotels would be at a disadvantage because on-post facilities would not be required to charge the county’s 3 percent bed tax.
IHG Army Hotels, a venture of Lend Lease and InterContinental Hotels Group (IHG), plans to turn an existing facility at Drum into a Holiday Inn Express and construct a new Candlewood Suites hotel. The owners of an existing Candlewood Suites just outside of the installation said IHG had promised it would not introduce another property with the same brand to the market.