Dayton Airport to solicit proposals for on-site hotel construction

DAYTON - Dayton International Airport will request proposals to build a hotel on airport property since a developer was unable to secure financing to construct a Holiday Inn there, Dayton's director of aviation said Friday.

Terrence G. Slaybaugh said he hopes to get the request prepared and out for public response within a few weeks to determine whether other developers would be interested and might have better luck in obtaining construction financing.

Construction contractor D.A.G. Construction Co. and hotel operator White Hills Hospitality LLC, both of Cincinnati, tried for months without success to obtain financing in what has been a challenging market for hotel construction loans.

Three banks had been evaluating the project earlier this month, according to the construction company. But a deal couldn't be worked out, so the airport administration wants to try again, Slaybaugh said.

Air crews or passengers needing to stay near the airport terminal building overnight to catch early flights the next day would provide a reliable stream of customers for an on-site hotel, even with the existing lodging competition, Slaybaugh said. PSA Airlines Inc., which flies under the US Airways Express banner, is headquartered at the Dayton airport and has an employee training facility there that attracts trainees from other cities.

D.A.G. Construction executives didn't return calls Friday requesting comment. A spokeswoman for InterContinental Hotels Group, operator of Holiday Inn hotels, also didn't return a call.

Airport officials had initially hoped to see a $15 million, six-story, 130-room Holiday Inn Suites built and operating by the end of 2010. That was scaled back to a $10 million, four-story, 90-room project as the economy continued to lag, officials said.

Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.