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Current Projects >> Honesdale Hospitality Site - PKF Extracts

Honesdale Hospitality Site

Extracts from a PKF Hospitality Consultants Study:

March 14, 2007

"As a result of our analyses we conclude that there is sufficient demand in the market area to support a new hotel development in the Honesdale area and, perhaps more importantly provide a reasonable level of financial return to property ownership. Growth in the area, primarily residential and related commercial development, has been strong as the economy continues to strengthen. This trend is expected to continue through the foreseeable future."

"Traditionally rural in character, Wayne County, with a population base of 50,100, is growing at the rate of nearly 2.0 percent per year, the third fastest growing county in the state. Honesdale is the county seat and largest commercial center with a population of approximately 4,900. Much of the recent growth has been fueled by the county's proximity to New York, New Jersey and Connecticut, with the county offering and attractive, less-urbanized setting and, perhaps, most importantly, substantially lower prices. Wayne County is on the fringe of the world's 5th largest contiguous urban area."

"The housing market in Northeast Pennsylvania is booming, particularly in Monroe and Pike counties, closest to New York City, comparatively less so in Wayne and Susquehanna counties, creating exurbs of Greater New York. Wayne County is considered the be in a transition phase, with a strong 2nd home market.....with continued western push from Greater New York a reasonable expectation."

"Visitors to the region were generally younger, attributable to the region's rural, outdoorsy nature, and generally more affluent then visitors statewide, attributable to the region's proximity to Greater New York."

"There is a limited supply of quality lodging accommodations in the Honesdale area, most of which consists [of] small bed and breakfast inns. The existing Fife & Drum motel and Wayne Hotel in Honesdale are considered to be of inferior quality, with the later housing long-term tenants on government subsidies."

"Highlights of our local survey are as follows:

  • Of the 30 organizations interviewed, all but four indicated a definite need for a hotel, with the remaining four skeptical and/or cautious.
  • Nine indicated and estimated level of utilization/need, ranging from 6 to 12 room nights per year to almost 300 nights."