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Eagle Grove adds lodging

Hotel to open this summer

-Submitted image
The new hotel being built in Eagle Grove will look like this when it’s completed. A group of investors are filling a need for destination lodging in the Wright County town.

EAGLE GROVE — Investors in Eagle Grove are taking the next big step to make the town into the destination they all believe it is.

By this summer, those visiting home, attending a wedding or coming to town for business will have another choice for lodging accommodations on the south side of town along Iowa Highway 17.

“We’re more of a destination,” said Mickey Cooper, president of Eagle Grove Hotel LLC, the group formed to start and help manage the hotel. “You’re coming to Eagle Grove for a reason.”

No matter the reason, they think they can fill the needs of those coming to town very well.

The new hotel, with a planned opening date of June 1, was prompted by recent changes in the growing business scene in town.

“There was always a general feeling we needed (another) hotel in Eagle Grove,” Cooper said. “A change in the business climate made us decide it was a good time to do it.”

The only other place to stay in town right now is the Sandman Motel, which Cooper said is more geared towards long-term stays. A feasibility study conducted by the city of Eagle Grove in 2017 showed that there was enough demand and capacity to handle another hotel in town.

“The market analysis was positive,” said Bryce Davis, city administrator.

After reaching out to area businesses to see if they were using hotels for their business needs, they were met with an “overwhelmingly positive” response to the idea of having another hotel in town, Davis said.

Cooper said that many businesses were using hotels in Clarion, Webster City and Fort Dodge for their business needs, which isn’t always ideal, especially in the winter.

“They said it would be nice to be closer,” said Cooper.

Then, the group of investors got to work, visiting other hotels and talking to a variety of chain and independent establishments.

“They gave great tips,” Cooper said. “We learned a lot about what works and what doesn’t work, especially in the construction stage.”

That formed their decision to go with Huegerich Construction Incorporated, of Carroll, a contractor that only builds hotels.

“We need this done in a short period of time,” the president of the LLC said — and they can’t afford to lose time with a contractor unfamiliar with building hotels.

The new option will be independent and locally owned. The group opted early on not to become a franchise in the interest of maintaining more quality control over the operations of the business.

“It’s important that the general manager and employees provide a good reputation and relationship with clients,” said Davis. “Therefore, we felt we could have more local control and do things the hotel couldn’t do in a franchise.”

Management of the hotel may be taken care of through a third-party management firm that can bring in experience from the hospitality industry at a more efficient cost and with a greater level of local control.

“We just felt that saving money on a franchise agreement and putting that back into management would better serve future users,” Davis said.

Those management options are under review now as the hotel orders furniture, fixtures and equipment.

Cooper revealed that the hotel’s name, not yet chosen, will be decided soon with input from both investors and the public.

While they don’t know what the star rating of the hotel will be yet, they’re focusing on a simple, quality mission.

“We just want to be clean, friendly and a place where people want to come back to,” said Cooper. “We’re looking at a homey feel, kind of how you have the feeling of warmth when you go home.”

Amenities and features will include guest laundry and adjoining rooms for larger parties. The two story, 32-room hotel will partner with local fitness centers, restaurants and amenities to avoid duplicating what Eagle Grove already has to offer.

That is, perhaps, part of the charm the new establishment will bring — getting people out into the community as the destination it is.

“The hotel will add another amenity that will allow individuals to stay in the community as well as to participate in different events,” Davis said.

Eagle Grove is home to the Wright County Fair, Summer Fest, and a variety of Chamber of Commerce sponsored events.

“I know we’re small town Iowa, but there’s quite a bit to do here,” Cooper said.

Marketing of the hotel will be managed by a third-party company with direct input by five investors.

So far, the execution of phrase one’s construction has gone off without a hitch, with only one minor modification made for bringing electricity to the building.

A second phase of the project, a conference center, will begin construction after completion of the hotel. Ownership and management of the conference center will be handled by a non-profit organization yet to be determined, with bookings going through the hotel’s existing software system.

The decision to make the conference center a separate, non-profit venture was to ensure viability of the project as a whole.

“With a large space, cash flow would have to be looked at,” Davis said. “The reduction in cash flow could pose a negative for return on investment, so it has to be on two different management structures to be successful.”

With a mix of about 20 investors, all of whom are Eagle Grove natives or people with connections to Eagle Grove, Eagle Grove Hotel LLC still has three shares available for purchase at $25,000 each.

The group is working with First State Bank in Eagle Grove for the $2.7 million project’s financial needs.

“We decided to go for three more shares just to make sure we’re well capitalized for money to manage the hotel,” Cooper said.

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