Morgan City is taking the next step to locate a hotel in its boundaries by writing a letter of intent to enter into a development agreement with Scott Somerville, president of Renascent Hospitality.
“The city is supportive of the project,” said Shelly Betz, Morgan City councilwoman.
The letter will outline the responsibilities of both the city and the developer, Betz said.
According to studies, Morgan City is best suited for a 60-room hotel with average daily rates of $80. The price to develop such a project would break down into $55,000 per room. Total, the hotel would be a $4 million project.
City leaders mentioned that to be profitable, a hotel in Morgan City would need to maintain an average 60 percent occupancy rate. While current needs and “off highway traffic” may not garner that much use of a hotel, many Morgan groups say they could plan future events that would equal increased need for a hotel.
For example, Morgan High School could host multi-day events if the community had a local hotel. In the past, Morgan High has had to forgo hosting such events.
Renascent Hospitality is headquartered in Westerville, Ohio. It is associated with the Embassy Suites in the Fairbourne Station redevelopment project currently under construction in West Valley City.
The company has managed hotels including Baymont Inns in Tennessee and Ohio, Comfort Inns in Ohio, Virginia and South Carolina; Country Inn and Suites in Iowa; Doubletree Guest suites in Dayton/Miamisburg, Ohio; Hampton Inns in Ohio, Kentucky, and Florida; Hilton hotels in Ohio and Nebraska; Holiday Inns in Ohio, New Hampshire and Texas; Springhill Suites by Marriott in Rhode Island; and Sheraton Hotel and Conference Center in Ohio.