BUFFALO, N.Y. (WKBW) — The Buffalo Grand, Downtown Buffalo's largest hotel boasts 500 rooms and more than 70,000 square feet of event space, but for close to two years the property has sat empty.
"It's been a nightmare," said Canadian developer Harry Stinson who owns the property. Stinson met with 7 News Anchor Jeff Russo outside of the hotel on Thursday.
"The hope was the same as it is now, to bring it back to its function as an event center," says Stinson who purchased the hotel in 2018.
Those plans were sidetracked in 2021 when a fire, ruled as arson, caused millions in damage.
The Buffalo Grand has sat idle ever since, currently condemned by the City of Buffalo, while Stinson says he continues to negotiate an insurance settlement of what he hopes is more than $50 million.
"The claim is valid. The fire happened. We didn't set the fire. We'll settle this and I'll get it open," said Stinson.
Stinson tells 7 News that he hopes to have the hotel rooms back open by next spring. The damaged convention space will take much longer. But while Stinson remains optimistic the lost hotel inventory with the site currently closed is hurting the local convention and tourism industry.
"It's a big issue," says Patrick Kaler, President and CEO of Visit Buffalo Niagara.
Kaler tells 7 News that the Buffalo Grand's 500 hotel rooms make up more than 20 percent of hotel inventory in Downtown Buffalo. Not having those rooms is hampering the city's ability to bid and compete for large events and conventions.
"Meeting planners don't want to sign multiple hotel contracts," says Kaler, "So without 500 rooms online we have to break up those between multiple hotel properties, and that becomes a challenge because it's 100 rooms here, 200 rooms here, 50 rooms at another property. That becomes a challenge for meeting planners because it's a lot for them to manage,"
So just how big is the issue?
According to a recent study using data from Smith Travel Research from 2020 to 2029 Visit Buffalo Niagara estimates that because of a lack of hotel inventory, the city will miss out on more than 400 events with a potential loss of economic impact of more than $306 million.
"That's huge," says Kaler, "typically the convention center alone will generate about $48 million of economic impact on an annual basis. So looking into the future, this is all of the business we could have had."
Business that only helps boost downtown area bars and restaurants including Osteria 166 which is located across the street from the Buffalo Convention Center.
"The convention center is really a huge part of our business. It's our lifeblood," says Nick Pitillo, Owner of Osteria 166.
Pitillo believes that Buffalo has become an event and catering-based city since the pandemic. He says he relies on the business that comes hand and hand with conventions.
"Insurance day, dental day, those kinds of things. We are just slammed for it. So the more conventions the better," says Pitillo, "They used to do a lot of cheering conventions, those were very good for us as well. Certainly, it's been down, but we are hoping to see a rebound."
So what's the solution?
One possibility is the future hotel rooms planned for the historic Statler, developer Douglas Jemal's $180 million mixed-use restoration project.
Douglas Development tells 7 News that current plans call for 213 hotel rooms in The Statler that could be ready to go within the next 12 to 18 months, subject to financing.
"There are three floors of existing hotel rooms that were never damaged from the original hotel build," said Paul Millstein, Vice President of Douglas Development, "We are restoring those three floors and bringing them back to life."
In terms of downtown hotels, Douglas Development also owns the Hyatt Regency. Millstein says that getting the hotel portion of The Statler back online would fill a big hole on Niagara Square.
"We need to continue to build synergy," says Millstein, "It's important to Buffalo, it's important to us, it's important to the convention center, important to New York State. It just hits every box."
Back out in front of the Buffalo Grand Owner Harry Stinson tells 7 News he's well aware of the impact of his currently closed hotel. He says he doesn't currently plan on selling but remains determined to begin what he started.
"There was a vision for it", says Stinson, "The vision was nearly accomplished physically. The building is still here. The location is first class."
In the meantime Visit Buffalo Niagara says the hotel industry, with the inventory available, remains strong. Hotel rates are at an all-time high in Downtown Buffalo, demand has also picked up.
Still, the challenges with hotel inventory have forced Visit Buffalo Niagara to focus on going after smaller meetings and conventions for the time being.
Kaler says Buffalo still has a lot to offer.
"We now have a convention center that's very appealing. We've done a facelift both inside and outside and continue to do improvements," says Kaler, "I really just need those hotel rooms first and foremost. More than anything."
