Carol Johnson, Southern Indiana Business Report
FRENCH LICK – The French Lick Resort experienced two sellouts of hotel rooms in April, the first time the hotel has sold out all its rooms since the COVID-19 outbreak.
Conferences are returning and leisure travel is also picking up.
And the April 8, 2024 solar eclipse, which will cover a portion of southern Indiana, has already led to a sell-out weekend at the hotel.
The robust return of guests is a good sign for the Orange County resort that includes the French Lick Resort, West Baden Hotel and Valley Tower.
The resort has weathered challenges brought on initially by COVID and exacerbated by higher gas and grocery prices. Less discretionary spending has affected casino revenue, but leisure travel, more guests coming to the resort for conferences and concerts are changing the business mix at the historic resort that has 757 rooms across the three hotels.
Chuck Franz, vice president of Cook Group, presented a resort update April 24 to community stakeholders.
The business mix has shifted drastically, Franz said. Over the past year, the hotel booked 70,000 rooms for group events, which he said was a record number.
And for the first time in 15 years, hospitality, which includes leisure and group events, exceeded casino revenue. Hospitality revenue exceeded casino revenue by $10 million in 2023. The casino’s Adjusted Gaming Revenue (AGR) is running equal to 2022.
From 2019 to 2022, leisure reservations have increased from 30% to 42% of the resort’s business. Group events have remained about the same, increasing from 40% to 41%. Casino revenue has decreased from 30% in 2019 to 18% in 2022.
Economic factors such as inflation and competition from other gaming sites are affecting the casino’s bottom line.
Franz said a new casino in Terre Haute will open in March 2024.
“That’s 10 to 11 percent of our market,” Franz said. “That will take trips away from us. We don’t see this competition slowing down.”
Racinos in Indianapolis were permitted to add other games, creating additional competition. The resort is working to offset the drop in casino revenue by investing in the hospitality side of the resort. Concerts in the new Exhibition Hall can draw as many as 2,500 people. Upcoming shows include Three Dog Night on May 20, Dustin Lynch on June 3, Travis Tritt Aug. 12 and the Marshall Tucker Band on Sept. 9.
Future projects
Franz also outlined future resort projects:
- Relocate the activity center for leisure guests to be easily accessible for guests at both French Lick and West Baden.
- The Bowling Pavilion on the grounds of the West Baden Hotel will be renovated. It will include six lanes for bowling and billiards space.
- Walking park
- Baseball diamond
- Basketball court
- Pickleball court
- Tennis courts
Housing update
Housing has been an area focus for Cook Group as a means of growth in southern Indiana counties that lack housing necessary to attract and retain talent.
Franz said Cook Group recently completed 12 homes on Abydel Road and home construction in the Klondike subdivision, which will add about 25 homes, will begin in June or July.
The Klondike project is a partnership between Cook and the Town of French Lick, which received a $1.75 million READI grant to install water and sewer infrastructure and build a road. Adding housing stock is a priority for Cook in other cities, such as Spencer and Bedford.
“If people stay here, your school system grows and your tax base grows,” Franz said.
Franz said the goal is to build 100 houses in Orange County, if Cook Group can find the land to build on. Home prices are between $155,000 and $185,000 and appraised for about $225,000.
The resort isn’t profiting from the housing investment.
“That’s not what it’s about,” he said of the investment. “Two teachers have bought houses and that warms my heart.”