Unorthodox Repurposing of Hotel Spaces to Create New Profit Centers
A Case Study of the Centrepoint Mediation and Arbitration Centre in Kamloops, BC
By Stephen Darling Principal, Stephen Darling Hospitality Consultancy Inc. | March 20, 2016
As a veteran hospitality consultant working out of Vancouver, British Columbia, I'm privy to some very interesting cases and projects throughout the Northwest that require highly creative solutions. Here is one instance that ended up a triumphant success because it creates an entirely new revenue stream for the property – one that would be foreign to most hoteliers.
One of my client hotels in Kamloops, BC had a 5,000 square foot street-facing, corner restaurant that was 'past its prime' and losing $500k per year. Initial triage meant closing the restaurant and consolidating meal service into the lobby lounge – after giving it a facelift. That was the easy part. While the primary goal was to cut the losses and lease out the now derelict space, after four years, we still hadn't yet found a suitor for the lease.
It was time for 'Plan B'. We created a wellness centre concept that included a fresh brand with central reception/washrooms and entry. The intent here was to lease the space out to four or five entrepreneurs, but the numbers didn't add up and that concept was quickly shelved.
Time for 'Plan C'. One of our owners had the idea of a mediation and arbitration center. While it first sounded like a stretch, we retained a university graduate who had just completed his master's degree in tourism research. His three-month assignment involved assessing and documenting regional demand, potential viability of such a business, potential tenants, its scope, details required in such a specialized facility and a handsome incentive payable for leased space.