GSB to consider funding for struggling Hotel MU
September 22, 2008
In the face of dwindling funds and low occupancy, the Hotel Memorial Union is fighting to stay open.
According to a hotel room analysis document, the hotel, which began its operation in the 1930s, has seen a decline in the number of guests from 2003 to 2008. There has been a 3.91 percent change of occupancy in that time.
While the hotel is generating enough revenue to stay open, “the occupancy definitely has room for growth,” said Laura Helmus, guestrooms manager of the hotel.
Therefore, the Government of the Student Body will be enacting a bill at Wednesday’s meeting to offer support for Hotel Memorial Union.
Helmus said recent construction on the building, which took place throughout the past three years, has attributed to a decline in guests staying at the Hotel Memorial Union. The hotel turned business away during this time, which did affect the hotel’s occupancy. Another cause for the decline of guests is the recent addition of new hotels in the area, she said.
According to the document, from July 1 through Saturday a total of 1,166 guests stayed in the Hotel Memorial Union. Three hundred sixty-nine of those guests were staying in Ames to attend weddings, theater events and other such social gatherings. One hundred sixty-four were family members of an ISU student.
A three-year time period was granted to “make the hotel more solvent,” Helmus said. This year marks the end of the time period for the opportunity to make the hotel a more profitable commodity. While the hotel has seen some upgrades — such as the addition of high-speed Internet and new carpet — future funds granted for further growth of the hotel have not been confirmed, she said. Currently, the hotel receives funding from income and the capital projects fund, Helmus said.
Helmus said a lot of money is necessary for the hotel to continue operating smoothly. She said the plumbing in the building is original — from the 1930s — and therefore is in need of updating. However, since such drastic changes require large amounts of money, smaller steps could be taken to improve the hotel, including the remodeling of hotel rooms, she said.
Helmus said the hotel director is searching for support from such organizations as the ISU Foundation and individual alumni willing to help fund these costs.
Helmus said she’s not sure what will happen if a decision is made to shut down the Hotel Memorial Union. In-depth discussion on the matter has not yet taken place.
Elisa Berzins, GSB public relations chair, business senator and junior in marketing, said a GSB offer of assistance to the Hotel Memorial Union can’t be made until the entire senate votes Wednesday. The public relations committee has been discussing sending notifications of GSB’s involvement in the project to other on-campus leaders, in hopes of getting their support in the endeavor as well, Berzins said.
“It’s the GSB’s job to inform students of what’s happening on campus.”