Construction of Salamander Resort in Middleburg Is Delayed

By Kafia A. Hosh

Friday, February 27, 2009

The company building the highly-anticipated Salamander Resort & Spa in Middleburg announced that it is delaying the opening until the spring of 2011 because of a sluggish economy and weak revenue projections for the hotel industry.

The 168-room luxury hotel, being built by Black Entertainment Television co-founder Sheila C. Johnson, was slated to open by March 2010. That date has been pushed back in light of the hotel industry’s lackluster performance this year, which will likely continue into 2010, said Prem Devadas, president of Johnson’s company, Salamander Hospitality.

Hotel “occupancies and rates are taking a precipitous drop that started last year but has really started to hit hard in 2009,” Devadas said today. “But now all of the industry experts, without exception, are predicting that occupancy will not bottom out until almost the end of 2010.”

Middleburg Town Council member Catherine Murdock learned about the delayed opening when Devadas briefed the council last night. Murdock said that while she understood the postponement, she was disappointed because the $130 million project has been eagerly awaited as an economic asset to the town.

“It’s upsetting for the town because I know a lot of merchants were counting on it and the town was counting on it for [tax] revenue,” she said. “But a lot of people around America are hurting, and this is one example.”

Devadas said a wastewater treatment plant that Salamander promised to build in exchange for town approval of the project is under construction and scheduled for completion before the end of the year.

Murdock said she is confident that Salamander will fulfill its commitment to build the plant, which would replace the town’s wastewater treatment facility.

Construction of the hotel will slow down, Devadas said, adding that half of the resort has been completed and its exterior will be finished this summer.

Johnson announced plans to build the resort in 2002, prompting a five-year debate over whether it would ruin the character of quiet Middleburg. In 2004, Loudoun County gave Johnson approval to build a 58-room hotel, and the following year the town council agreed to adjust Middleburg’s boundaries so Salamander could expand to 120 rooms. In 2007, the council granted Salamander an additional 48 rooms.

Tagged: development, Middleburg, Middleburg Town Council

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