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Business needs push total to 6 at I-84 and Route 9
by Gabe Anderson
for the Poughkeepsie Journal
11/15/98

FISHKILL -- Twenty years ago, a lone hotel, the Holiday Inn, stood like an oasis at the intersection of I-84 and Route 9.

Now, six hotels and 731 rooms greet travelers at the southern gateway to Dutchess County. Two of the hotels, the Hampton Inn and MainStay Suites, are recent additions. They've joined other longtime fixtures at the crossroads -- the original Holiday Inn, the Wellesley Inn, and the Courtyard and the Residence Inn, both owned by Marriott.

Two more hotels -- the Grand Chalet and the Sleep Inn -- are expected to break ground at the intersection within the next year. It's also likely that a third new hotel will appear within the year at exit 15, the next stop to the east along I-84, according to Gordon Rutherfurd, director of external marketing for the Dutchess County Economic Development Corp.

Off-season also busy

Is there really a demand for so many hotels in such a concentrated area? Hotel managers say yes. And as occupancy rates remain steady -- as high as 70 percent or 80 percent, even during the off-season -- this commercial hot spot continues to grow.

What draws developers to the intersection? "Location, location, location," said Joan Pagones, supervisor of the Town of Fishkill. "You have a host of restaurants. You have the commuting public coming into Dutchess County for tourism, for college weekends."

Over three million visitors came to Dutchess County between September 1996 and August 1997 spending nearly $335 million, according to the latest figures available from the Dutchess County Tourism Promotion Agency.

"We have what we call the `Boston-Washington corridor,' " said Rutherfurd. "If you look at a map, you'll see that Fishkill is exactly halfway in between Boston and Washington. It's also 60 miles from New York City, so it's halfway between there and Albany. Dutchess County is the center of this megapolis."

The new hotels "give us an opportunity to bring in more groups, small meetings and conventions as well as visitors to the area," said Mary Kay Vrba, assistant director of the county's Tourism Promotion Agency. The total of hotel, motel and bed and breakfast rooms in Dutchess County is now 2,791, with the addition of the new entries in Fishkill.

The location is ideal not only for tourists and visitors to local colleges, but also for business travelers. It's so popular, in fact, that most of the hotels are often sold out during the week.

"We fill up Monday through Friday," said Gloria Cerniglia, reservations supervisor at the Holiday Inn. "It's been a fantastic, blooming year. We usually sell out (during the business week) because we have a lot of corporate people. The majority of business most definitely comes from business travelers."

The steady flow of business travelers is a result of the commercially viable area, where companies like IBM Corp. and have staked claims.

There's also the recent announcement that Gap Inc. plans to construct a new distribution center in that area, helping the economic stability of southern Dutchess.

When more than 1,000 individuals secure new jobs with Gap Inc. in the next few years, they'll owe their thanks in part to the hotels in the area.

Companies in the market for expansion or relocation "like to have a location that has a lot of hotel rooms," said Rutherfurd. "Over 700 rooms is a good selling point for those companies. We find that the business travelers bring more hotels and vice versa."

The flow of business travelers to the area is steady, according to Rutherfurd, who says it should stay that way.

"The business climate is really good right now and we expect it to be better in the next few years," he said.

It's no secret in the hotel industry that Fishkill is a prime market, and corporations and entrepreneurs alike are capitalizing on it.

"(The hotel owners) come in and do their market studies," said Marsha Gordon, president of the Greater Southern Dutchess Chamber of Commerce. "They see this hub as an important business and travel point."

Of the six hotels in the area, four are corporate-owned -- the Courtyard, MainStay, Residence Inn and Wellesley Inn -- and two are privately held -- the Hampton Inn and the Holiday Inn.

Life savings invested

"About a year and a half ago we went out, did a market study, and confirmed that there was a need for additional hotels (in the area)," said Arthur DeDominicis, a Beacon resident, who owns and operates the Hampton Inn along with partner Gary Joseph of Wappingers Falls.

"We decided to take a gamble and invest our life savings into this hotel because we believe in the area," he said. "What better way to invest in the area?"

Even following the opening of the two new hotels, demand continues to be high. "It's always amazing to me to see that the occupancy rate goes up and (stays) there (after a new hotel opens)," said Pagones.

Andy D'arcy works for an electronics hardware company in Florida and recently spent six weeks at MainStay during a business trip. He found that nearly all the other occupants were there on business as well. He comes often to Fishkill on work-related trips and said that the stores, restaurants and other facilities in the area are conducive to business.

"(MainStay) is very convenient," said D'arcy. "I'll trade all the amenities for the convenience and the price. You literally have a one-bedroom apartment that includes a living room for only $65 or $70 (per night) as opposed to a $200 suite at Holiday Inn."

Competition, however, does not seem to be a major factor among the hotels. "If there's a night we fill up, we send (people) to the Hampton," said Cerniglia. "We do a lot with the other hotels in the area. We keep in contact with each other at least once a day. Even though we're in competition with each other, it's wonderful that everyone works (together)."

Competitors on good terms

That sentiment is echoed by Howard Gerhardt, general manager of MainStay.

"Everybody's on very good terms," he said. "If somebody gets full, the desk clerks will call to find (the guest) a room at any other hotel in the area."

The two long-term hotels, MainStay and the Residence Inn, offer only suites and target the business guest who plans to stay at least a week. A suite at the former starts at $89 per night and the rate goes down depending on the length of stay. Suites at the latter start at $125 and become progressively less, down to $94.

Although standard room rates at the other four hotels are comparable, they vary depending on day of week, time of year, events happening in the area and occupancy.

For a weeknight stay during the fall season, rates range from $89 to $125 or more. Weekend bargains dip as low as $49 per night November through February. The handful of suites in each of the hotels demand a steeper rate.

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