French Lick Resort improves experience for visitors with new concert hall, smoke-free casino
Carol Johnson, Southern Indiana Business Report
FRENCH LICK – Revenge is a dish best served cold, goes the old saying. Revenge tourism is a dish best served with a round of golf, an overnight stay in a luxury hotel and a few pulls of a slot machine.
The French Lick Resort is beginning to rebound after it saw its revenues drop during the peak of the pandemic when the hotel closed for a time and restrictions on gatherings kept people at home.
Getting back to pre-COVID revenue levels for the French Lick Resort has been the goal. Chuck Franz, vice president of Cook Group, parent company of the resort, said the Orange County historic destination is seeing signs that the resort will return to pre-COVID revenue.
Franz said the resort was on track to have a strong year in 2022, until a spike in gas prices caused a downturn. But “revenge tourism” and a new concert hall may have the last word as the resort’s golf courses, spas, and the new Valley Tower appeal to guests eager to get away for some leisure time.
Franz gave an update on the resort Nov. 14 to Orange County area stakeholders. He said he’s confident that new additions to the resort, a smoke-free casino environment and growth in existing amenities will restore revenues to their pre-pandemic levels. The new Valley Tower, which opened in the fall of 2019, is a key part of the growth.
During the pandemic, annual revenue dropped below $75 million and the revenue collected by the local governments declined. Four months into the 2022-23 fiscal year, the resort is on track to reach $75 million in revenue, an amount not seen since before COVID.
“We’re fighting every day to create that environment that gets us back above that,” Franz said.
Visits to the resort have shifted the past few years. In 2019, the casino made up 30% of the resort’s total revenue. In 2022, gaming dropped to 19% but leisure travel, which was 30% in 2019, is now 40%. Group travel such as conventions and meetings, stayed the same, about 40%.
That shift, Franz said, has led to a shift in the resort’s focus.
“The pandemic taught us a lot and we used the time to re-engineer ourselves. That shift in revenues is strategic. Hospitality is our product and the casino is one of our amenities,” he said.
Play is up at Pete Dye, Don Ross courses
“During the pandemic, golf was off the charts. We used to say we wanted to do 6,000 rounds of golf at the Pete Dye. This year we did 9,000 rounds. It’s off the charts,” Franz said. “We are a destination for golfers.”
Golfers do more than golf when playing the Pete Dye, a top-rated course known for its beauty and challenging layout. They dine at restaurants, visit the casino and explore the towns of French Lick and West Baden.
Revenue from golf, prior to the pandemic was about $4.5 million; Franz said he expects that to increase to $8 million.
More concerts in 2023
The new Exhibition Center hosted its first performance in October when comedian Bill Engvall performed. Franz said plans are to have 10-12 concerts a year in the new Exhibition Center, which seats up to 3,600.
Previously, concerts, no more than four per year, were held in the Hoosier Ballroom, which is also used for large group events.
“We can get more people in the Exhibition Center, it has better seats and a better view of the stage,” Franz said.
Lonestar and Bret Michaels are booked for January and February 2023 and Franz said the resort is working with other big names that will be announced later.
Franz said concerts are big drivers of revenue, second only to New Year’s Eve, the largest single day generator of revenue.
Revenue for communities
When revenue is down, local governments in Orange County are also affected.
Orange County government has seen a sharp drop in its share of gaming revenue.
In a year over year January-November comparison, Orange County has seen its casino draw plummet from $1.03 million in 2019 to $257,018 in 2022, a 75% decrease.
Gaming revenue sent to local governments has dropped each year since the pandemic. In 2020, the county’s share dipped to $392,000 followed by 2021 when it received $315,000.
The financial effects of the pandemic and the casino and resort closing for a few months would have been devastating, said Orange County Auditor Lonnie Stroud, had the county not taken steps to be less dependent on gaming revenue.
Stroud said gaming revenue is now used for charitable contributions and to provide a county match for grant funds.
“If this had happened in 2017, it would have been devastating,” Stroud said.
The town of Orleans has received $125,000 in casino dollars this year. In 2021, the town received $160,000, according to Orleans Clerk-treasurer Robert Henderson.
Henderson said the gaming revenue is used to fund park and infrastructure improvements, buy equipment and to leverage grants when the town needs to provide matching funds.
News that there are signs of the resort’s recovery were encouraging, said Henderson.
“When the casino was closed in 2020, that was a huge impact to the overall region,” he said. “The historic hotels are a treasure and those were closed to the public for some time.”
Orange County Commissioner Richard Dixon, who attended the update, called Franz’s forecast, “excellent news.”
“I anticipated maybe more bad news because of talk about COVID lingering,” Dixon said. “But I was very happy to hear about some of the things they’re doing.”
Dixon, who is a former Orange County sheriff and is the Orleans town marshal, said Cook Group’s role in constructing houses in Paoli and French Lick will not only address the affordable housing shortage but also add to the county’s tax base.
“The more residents we can get here, we’re all better off,” he said.
More updates
Franz provided updates on other initiatives the resort and Cook Group are working on in Orange County.
Cook Group has been involved with increasing housing in Orange County. Six homes are completed and another six will be completed in the next six months. In 2023, work will begin on building homes on 27 lots in French Lick.
Employee recruitment
Like other employers, the resort has been affected by the labor shortage. To improve employee recruitment, the resort opened an office in Clarksville where eight employees work in marketing, human resources and reservations. A shuttle brings employees from Clarksville to work at the resort.
West Baden bowling pavilion
Restoration of the historic bowling pavilion on the grounds of the West Baden Springs Hotel will begin in 2023. A wall was built to protect it from flooding. The plan is to restore it to a six-lane bowling alley and construct a wing, making it suitable for hosting events.
Competition
Franz said the resort is also strategizing for increased competition. A new casino in Terre Haute is expected to open in spring of 2024. The Queen of Terre Haute is a $260 million project that will include a hotel and casino.