Mayor updates council on St. James Hotel revenue
Published 7:15 pm Saturday, April 11, 2015
Though not in the black, Selma city leaders are pleasantly surprised with the St. James Hotel’s revenue after running the hotel for almost a month.
Three weeks after the city and Strand Management company parted ways, the hotel has brought in about $21,000.
City treasurer Ronita Wade said it’s possible the hotel could make about $28,000 in revenue this month.
“It’s amazing to me what is happening at the St. James in terms of revenue stream,” Mayor George Evans said at Thursday’s city council work session.
“It’s taking in money like never before.”
Expenses each month are approximately $38,000-$43,000. The hotel’s payroll accounts for $23,000 of that amount.
The $12,000 to $15,000 deficit is less than the $20,000 a month the city was paying Strand Management to handle the hotel’s day-to-day operation.
“We will have to subsidize. The dollar amount shouldn’t be as large, but there is the expectation that we will have to subsidize,” Wade said
The mayor and several city council members have expressed their desire to bring in another management company or sell the St. James within the next three to six months.
Evans said one management company has visited Selma to look at the hotel.
A forensic audit of Strand’s time as hotel managers is being done.
Wade said the city is waiting to receive more information from Strand on their policy and procedures.
Though head chef Carlos Brown was not kept on board after Strand left Selma, sous chef Emmanuel Kimaro has joined the city during its temporary operation.
Kimaro has debuted a new menu at the St. James. The restaurant is open weekdays from 11 a.m. until 9 p.m. and Friday and Saturday from 11 a.m. until 10 p.m.