Pivoting in the Pandemic: West Virginia’s Hospitality Industry

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By Cathy Bonnstetter

Photo by Oglebay.

As COVID-19 rocked the world and shut down much of the country, 2020 proved to be a lonely and empty year—empty streets, empty stores, empty offices and empty restaurants and bars. Much of everyday life was canceled—holiday parties, weddings, retreats and nights out at local haunts. As a result, the hospitality industry suffered greatly.

In fact, the National Restaurant Association reported that six months into the pandemic, 100,000 restaurants across the country closed either permanently or long term, leaving the industry on track to lose $240 billion in sales by the end of 2020. The hotel industry fared no better. By August 2020, almost 65% of hotels nationally remained at or below 50% occupancy, which is below the break-even threshold, according to an American Hotel & Lodging Association (AHLA) report.

Although the pandemic took a record-breaking toll, some hospitality businesses in the Mountain State not only made it through the quarantine, they emerged bigger and better. For them, COVID-19 provided an opportunity to step up rather than a fatal fall.

As the nation awakens from its pandemic-induced sleep, the hospitality industry is once again springing to life. The National Restaurant Association reported in June 2021 that sales are just 3% below pre-pandemic levels, and the AHLA reported that, although the hotel industry will be the last to recover, by the last half of 2021, business travel, which comprises the largest source of hotel revenue, will begin a slow return. In West Virginia, hospitality enterprises that weathered the storm and emerged with even stronger visions are wide open and ready to serve customers weary from takeout food and virtual meetings.

Hotel Morgan

The Hotel Morgan, a Wyndham property and fixture on downtown Morgantown’s High Street since 1925, came full circle during the COVID-19 pandemic shutdown. Major renovations returned the hotel to its 1920s-era splendor during 2020. The Thrash Group, a real estate development company with properties across the U.S., now owns Hotel Morgan.

“The vision of our ownership to totallyrenovate and remodel a 100-year-old hotel during a pandemic shows the commitment to the community, West Virginia University (WVU) and guests,” says General Manager Robert Mickey. “Hotel Morgan was completely renovated and reimagined in 2020.”

The hotel hosts 81 guest rooms and two suites, along with a 3,200-square-foot, two-story grand ballroom, conference and board room and fitness center. Renovating such a huge structure is a challenge any time, and 2020 had its own particular set of challenges. Mickey says that the reopening was slightly delayed due to labor and supply chain complications. Since the reopening in early 2021, the hotel has seen full capacity.

“The feedback from the community, WVU and new and previous guests has been nothing short of amazing,” Mickey says. “The hotel’s rebirth is in keeping with the Thrash Group’s mission of creating relevant real estate developments that positively affect its communities. Hotel Morgan is a source of newfound energy to visitors and locals alike, combining historic splendor with contemporary accommodations.”

In decades past, Hotel Morgan, with its magnificent ballroom and crystal chandeliers, was the height of elegance. Today, it combines the property’s historic splendor with contemporary accommodations like Anvil + Ax, its European coffee shop and cocktail bar.

“With this round of renovations, I believe a landmark has been reborn, restoring the property to its 1920s prestige,” Mickey says. “Hotel Morgan has reclaimed its rightful place as downtown Morgantown’s premier boutique luxury hotel.”

Inkwell’s Tavern

Inkwell’s Tavern in Charles Town was celebrating its one-year business anniversary when Governor Jim Justice’s orders closed its doors on March 17, 2020. Owners Derek and Misty Bendit quickly
changed their business model so their little cocktail bar could power through that empty time. During April and May, Inkwell’s became a curbside only business.

“We were mainly a bar, not a restaurant, so we only had a few menu items,” Misty says. “We turned the bar room into almost a prep kitchen so we could do to-go items. We could not sell to-go cocktails, only beer and wine, so we had to rely heavily on food.”

Inkwell’s specializes in made-from-scratch food and drink. This includes craft cocktails made with in-house syrups and craft beers. Its menu boycotts any fried bar foods, but the entertainment is traditional pub fun, including darts, billiards and arcade games. From May 26 to December 26, 2020, the Bendits opened the doors at half capacity.

“We realized quickly that we would not make it in our original space,” says Misty. “If we stayed there, we could only have 12 patrons inside. Luckily the Bars and Booths building across the street became available. The landlord really worked with us, or we would not have been able to pull it off.”

Misty, a tattoo artist for more than 20 years, and Derek, a Marine veteran and sales and estimate professional for River Valley Construction, closed the doors completely on December 26 to give their tavern the virus prescription it desperately needed: space. Social distancing was the new social plan, and they were determined to get on trend.

Inkwell’s Tavern reopened in the new location the last weekend in February and has since resurrected its live event nights. Its new space allows the staff to care for patrons at an even higher level.

“Size was a huge issue across the street,” says Misty. “I have pictures where there was a line to the end of the block trying to get into the bar. More is better for all of us—for our patrons and our staff.”

Nomada Bakery

When the Nomada Bakery team decided to shut the doors at its six-month anniversary mark, just as the pandemic was picking up speed, owners Dr. Shawn Schulenberg and Ariel Barcenas got creative and reimagined their business from scratch. The Huntington bakery emerged from the COVID-19 shutdown with a streamlined business model shaped by the pandemic and prepared for the future.

“We started to brainstorm new ways to reconcile both economic and safety demands,” says Schulenberg, who is also a political science professor and chair at Marshall University. “The social reality of the pandemic would likely change every few months, and we would have to continually adapt to meet consumer demand.”

The owners’ first plan was to improve their existing internet game and create a new, online store. They purchased and programed an entirely new computer system, including a point-of-sale system that allowed for direct customer interaction.

Six weeks later the bakery reopened with a small staff serving the brunch box, an assortment of food and pastries. As employees felt safe returning to work, Schulenberg and Barcenas organized shifts throughout the day to give them safe space.

As COVID-19 relaxed its grip, Nomada reopened for walk-up customers, with a streamlined traffic flow, thanks to the new website and point-of-sale system.

“Our new point-of-sale system was integral because it allowed customers to see our current inventory without entering the building, pay through their phones or a contactless payment system and schedule their pickup times to avoid close human contact,” Schulenberg says. “This has evolved into a dynamic ordering system where customers can easily place orders to pick up now or preorder large items for a future date.”

As fall approached, Nomada welcomed customers inside to pick up their orders and, after vaccinations became readily available, opened for indoor seating.

“Because we were still a new business pre-pandemic, we were not resistant to changing everything if needed,” Schulenberg says. “However, we did not have the capital to keep us afloat, like more established businesses. Government grants gave us the needed capital at several crucial junctures in 2020, and customers loyally and generously supported us. Without all this we would not have survived.”

Oglebay

As isolation gripped the state and country in 2020, Oglebay in Wheeling braced for the worst. However, by remaining agile and keeping its marketing emphasis fluid, the resort did not realize its worst nightmares, and, in fact, was able to renovate while navigating the pandemic.

“Initially, it appeared the reduction in the group and conference business segments here would result in the property experiencing at least a 45% decrease in annual revenues,” says Herb Faulkenberry, vice president of sales and marketing at Oglebay. “By shifting our marketing emphasis to families seeking recreation, as well as the neighboring states canceling both golf and wedding-based business, we were able to regain a very large portion of that potential loss while developing a new customer base.”

When social distancing sliced into the resort’s restaurant business, Oglebay embraced takeout and expanded its menu. By the end of fiscal 2020, the looming 45% decrease in revenues shrank to about 18%. As Zoom meetings became the norm, Oglebay’s conference center stood empty but ready for a facelift.

“Oglebay decided to accelerate its already planned renovations of all meeting spaces,” says Faulkenberry. “The circumstances were almost perfect because we wouldn’t have to disrupt any booked events.”

Faulkenberry says raw material shortages that characterized much of the pandemic made the renovation challenging, but the resort’s more than 20,000 square feet of newly renovated conference spaces were ready and functional by August 1, 2021. The brighter, modern conference rooms support and even surpass today’s technology demands. As the pandemic’s grip begins to loosen, Faulkenberry says 2021 could be a year for the books.

“Going into this fiscal year we had predicted that business levels we saw in 2019 would not return until 2022 or, more likely, 2023,” he says. “I could not have been more incorrect. We are presently exceeding the levels of business experienced at this same time in 2019. This is a good barometer for the remainder of 2021 and a business pace I hope continues.”

The Gaines Estate

Husband and wife Bill and Sally Wells and their business partner in Cascade Properties, Richard Stephens, were preparing to open The Gaines Estate, a stylish and grand event venue in downtown Fayetteville, just as COVID-19 was tightening its grip on the country.

“Our first event was a wedding scheduled for May of last year. Of course, that got canceled, along with several others,” Bill says. “The governor ended up stating that weddings could still be held, but people were so confused and concerned about what to do, we had several early weddings pushed back, some to this year.”

The owners kept the venue open to whatever events were deemed safe and adapted to the times. While the owners used this time to complete the vision for The Gaines Estate, private events dried up as the virus rolled on, and the wedding business limped along.

“In January 2020, we had 20 weddings scheduled,” Bill says. “We anticipated opening in May, but 10 of those weddings either canceled or postponed until 2021. We did book five during last year and ended up with 15 weddings, which wasn’t too bad. We probably would have ended up with 25-30 had it not been for COVID.”

Because the team embraced the down time, The Gaines Estate simultaneously overcame the COVID-19 crisis and a 2018 fire, and renovations took place in earnest and without interruption in the empty spaces.

The estate now boasts a full bar and commercial kitchen that can serve more than 200 people; a new, 4,000-square-foot pavilion that is fully enclosed, heated and airconditioned; and three guest rooms. The space includes several wedding ceremony sites. This unique, 192-acre estate is now the grand venue its owners envisioned, and business is bustling. The estate has opened its arms to the community, even hosting a weekly farmer’s market.

“We have hiking trails, and we have opened up the pasture to local residents to walk their dogs or bike when we are not having an event,” Bill says. “We try to program community events when we aren’t booked for a private event. Community response has been great.”

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